15/07/2004

Stagecoach Group supports the Government’s aim to improve the structure of the rail industry and ensure it works in the collective best interests of passengers, taxpayers and investors.

As one of the UK’s most experienced rail operators running the country’s biggest rail franchise, we have continued to stress the need for greater integration on the railways to ensure all agencies are pulling together to deliver a better service to customers.

The ideas outlined in our Platform for Change policy paper some time ago have gathered support. The integration of infrastructure maintenance into Network Rail is now almost complete and - in partnership with Network Rail - we are now running the UK’s first integrated control centre at London Waterloo, the first of eight such centres planned across the country. Both these initiatives were recommended by Stagecoach in Platform for Change.

We believe that further vertical integration is essential if ever Government is to optimise both the cost and performance of the UK rail industry. The informal arrangement between Network Rail and the train operators proposed in the rail review should be formalised. By establishing a joint venture pilot project we believe the interests of safety, the passenger and the shareholder can be aligned for the benefit of all.

We fully endorse the Government’s view that the private sector is part of the solution and, in partnership with the public sector, the train operating companies have an important role to play in taking the industry forward.

Stagecoach has demonstrated its faith in the future of our railways by its involvement in two of the UK’s biggest investments in new rolling stock at South West Trains and Virgin Trains. Following today’s announcement, we continue to have firm confidence in the future prospects for business in the rail sector in the UK and we believe there is clear potential to grow the market for travel by train.

We broadly welcome the Government’s general statements of principle as part of the rail review. We now look forward to positive detailed discussions with the Government and other key stakeholders to ensure that the practical application of these principles is in the best interests of our operations specifically, the rail industry in general, and, most importantly, the needs of our passengers.

Stagecoach intends to take an active part in working with Government to provide the detail that will support the principles of the rail review. Whilst our existing rail contracts are commercially protected from changes proposed under this review, we believe our continued participation in discussions will help produce a robust plan on which to base the future of UK rail.

In the meantime, we will continue to get on with what we are paid to do: working hard to drive up our performance, improving operating efficiency and boosting service to the hundreds of thousands of passengers who use our trains each day.

ENDS

For further information, please contact:

Steve Stewart, Head of Media and Public Affairs, Stagecoach Group
Tel: 01738 442111