UK Government Considers Public Train Ownership Amid Rosco Profits
Transport Secretary Heidi Alexander is weighing public ownership of trains after rolling stock companies paid nearly 400 million pounds in dividends last year.
The UK government is considering a shift toward direct train ownership through Great British Railways to potentially reduce costs for taxpayers and passengers. Heidi Alexander, the Transport Secretary, stated that the government should pursue this model if it proves to be the best way to serve the public.
The move follows reports that chief executives of three major rolling stock companies, known as Roscos, earned a combined 3.5 million pounds last year. During the same period, these firms paid nearly 400 million pounds in dividends to shareholders. Eversholt Rail paid 200 million pounds in dividends prior to its sale to Beacon Rail, while Angel Trains and Porterbrook Holdings paid 111 million pounds and 80 million pounds respectively.
Executive compensation also drew scrutiny, with Porterbrook CEO Mary Grant earning 1.44 million pounds and Eversholt CEO Mary Kenny receiving 1.33 million pounds. In response to these figures, the RMT union has demanded a cost of travel levy on these profits to fund a 3.4 percent fare cut for passengers.
