Sell-off
sparks
shake-up
Exclusive report
by DEREK DOUGLAS
A REORGANISATION of administration at senior level within British
Rail, being undertaken against a backdrop of threatened privatisation,
could end years of internal tensions and rivalry by returning fiscal
powers and real authority to a Scottish supremo operating from Glasgow.
BR replaced autonomous geographical regions four years ago with five
business-identified sectors. This neutered the real power of the
regional general manager.
The lines of command operating under the sector management system have
led to internal tensions. Senior railwaymen in Scotland, with the
backing of the Scottish Office, are known to have been lobbying hard for
a return to the pre-1985 set-up with the Scottish general manager being
master in his own house. Negotiations are said to be at a particularly
delicate stage.
In Scotland, the current general manager, Mr John Ellis, who has
13,000 staff, ostensibly controls the network north of the Border.
However, unlike his predecessors before reorganisation, he has no
absolute input on strategy and spending.
In reality, the UK railway network is run from London where the
directors of the five divisions -- InterCity, Freight, Parcels,
Provincial and Network South East -- are based.
The case for the Scottish general manager to be given back some of the
financial power enjoyed before 1985 is based on the principle that
Scotland is a nation and that it is preferable -- in negotiations with,
for instance, the Secretary of State for Scotland and senior local
authority figures -- for the officials to know that they are dealing
with an individual wielding power.
The Scottish general manager is sidelined at present on the strategic
issues because under the five-sector plan the major decisions are taken
by the sector directors operating in London. They base their decisions
on advice provided by sub-sector directors in the provinces.
There are four senior officials in Glasgow, ostensibly operating under
Mr Ellis but reporting to directors in London.
Mr Iain Maclean and Mr Neil Atkins are responsible for InterCity in
Scotland; Mr David Clayton oversees freight; and Mr Chris Leah, also
reporting to his director in London, is the provicial network sub-sector
manager in Glasgow. Under such a structure, it can be seen that, in
terms of strategic input, there is very little for the hitherto
all-powerful general manager to get his teeth into.
The internal review is being conducted by the BR board chairman Sir
Robert Reid whose idea the sector management system was. It has been
prompted by the Government's aim, albeit rather muted of late, to sell
off the rail network.
Sir Robert, who retires in March, is set against piecemeal
privatisation and favours the formation of a holding company overseeing
the entire network. This would make it more difficult for the profitable
parts of the package, such as Inter-City, parcels and freight to be sold
off leaving the unprofitable, grant-aided parts like provincial (which
includes Scotland) and to a lesser extent Network South East, still in
the public sector.
Scotland receives about one third of the Public Service Obligation
grant which the Government makes available to subsidise loss-making
routes. If under privatisation this grant were to cease -- and it is
currently worth in the region of #600m -- then the provincial network,
including Scotland, becomes a distinctly unattractive proposition for
potential buyers.
Railway insiders were speculating yesterday that renewed autonomy for
a Scottish region could mean that in the event of privatisation, however
distant, Scotland could be left out of the equation.
Mr John Boyle, director of public affairs for British Rail in
Scotland, said last night: ''Railway organisation is a matter for the
British Railways Board and I can offer no comment on this.
Unquestionably, our present business-led orgainsation has been a
remarkable success, witness the #125m we can now afford to invest in new
trains for Scotland.
''The general manager is the railway's chief officer in Scotland. His
job is to run the entire operation to specifications agreed with
individual business managers here and, in the case of Strathclyde, with
the regional council. This arrangement has worked well under successive
general managers.
''Privatisation is a matter for Government, not British Rail, to
decide in the best interests of our customers.''
Mr Ian Dick, secretary of the Transport Users' Consultative Committee
in Scotland, said he was aware of criticisms being voiced about the
sector management structure.
''I know, for instance, that there has been a lot of debate about
general managers 'not being what they used to be.' Chris Green, for
instance, when he was general manager up here was God. Whatever he said
was done.''
* TRANSPORT Secretary Cecil Parkinson is struggling to find a new
chairman for BR even though the salary on offer is at least double Sir
Robert's #92,000. Mr Michael Bishop, chairman of British Midland
Airways, is the latest to turn down the post. He rejected the job
because his airline has just struck a deal with the Scandinavian carrier
SAS which was dependent on Mr Bishop staying at the airline.
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