The privatisation programme pursued by successive Conservative administrations in the 1979–97 period was based on neoliberal values, and was aimed at the reduction of public sector involvement in industry by the promotion of a competitive ‘free’ market. However, despite this ideological objective, several large utility companies were privatised as regulated monopolies. Against this background, in a notable reorientation of privatisation policy, the Major administration attempted to secure a genuine movement towards market liberalisation when it divested British Rail (BR). An elaborate methodology was used to break BR's monopoly and establish a competitive market for the provision of passenger rail services. The authors argue that, notwithstanding the complexity of the rail sell-off, competition has not materialised and BR's monopoly has to ail intents and purposes been reconstituted in the private sector.
Get full access to this article
View all access options for this article.
References
1.
ATOC, 1997Annual ReportAssociation of Train Operating Companies, CP333, Third floor, The Podium, 1 Eversholt Street, London NW1 1DN
2.
BarryN, 1987The New Right (Croom Helm, London)
3.
BBC, 1996, “Off the rails”Panorama documentary (British Broadcasting Corporation, London)
4.
BradshawW, 1997, “Competition in the rail industry”Oxford Review of Economic Policy1393–102
5.
BRB, 1962The Reshaping of Britain's Railways—Part Two: Maps British Railways Board (The Stationery Office, London)
BRB, 1996National Conditions of CarriageBritish Railways Board, Euston House, 24 Eversholt Street, London NW1
8.
CharltonCGibbRShawJ, 1997, “Regulation and continuing monopoly on Britain's railways”Journal of Transport Geography5147–153
9.
Conservative Party, 1983, The Challenge of Our TimesConservative Central Office, 32 Smith Square, London SW1
10.
Conservative Party, 1992A Brighter Britain: The Conservative Manifesto 1992Conservative Central Office, 32 Smith Square, London SW1
11.
Conservative Party, 1997You Can Only be Sure with the Conservatives: the Conservative Manifesto 1997Conservative Central Office, 32 Smith Square, London SW1
12.
DoT, 1992New Opportunities for the Railways: The Privatisation of British Rail Cm 2012, Department of Transport (The Stationery Office, London)
13.
DoT, 1993Gaining Access to the Railway Network: The Government's ProposalsDepartment of Transport, Eland House, Bressenden Place, London SW1E 5DU
14.
DoT, 1994Britain's Railways—A New EraDepartment of Transport, Eland House, Bressenden Place, London SW1E 5DU
15.
DoT, 1996, “Rail privatisation programme: sales completed or agreed/franchises awarded as at 27 June 1996”, unpublished information document; available from Railways Division, Department of Transport, Eland House, Bressenden Place, London SW1E 5DU
16.
FarnhamDHortonS, 1993Managing the New Public Services (Macmillan, London)
17.
FosterC, 1992Privatization, Public Ownership and the Regulation of Natural Monopoly (Blackwell, Oxford)
18.
FosterC, 1994The Economics of Rail PrivatisationCentre for the Study of Regulated Industries, 3 Robert Street, London WC2
19.
GreenD, 1987The New Right—The Counter Revolution in Political, Economic and Social Thought (Harvester Wheatsheaf, Hemel Hempstead, Herts)
20.
HancherLMoranM, 1989, “Introduction: Regulation and deregulation”European Journal of Political Research17129–136
21.
Hansard1992 volume 213, Column 1162, 29 October (The Stationery Office, London)
22.
HayesM, 1994The New Right in Britain—An Introduction to Theory and Practice (Pluto Press, London)
23.
HC, 1992a, “Future of the railways”House of Commons Papers, Session 1992–93 246II (The Stationery Office, London)
24.
HC, 1992b, “Future of the railways”House of Commons Papers, Session 1992–93 246V (The Stationery Office, London)
25.
HC, 1993, “Future of the railways”House of Commons Papers, Session 1992–93 246xxii (The Stationery Office, London)
JenkinsS, 1995Accountable to None: The Tory Nationalisation of Britain (Penguin Books, Harmondsworth, Middx)
28.
KayJThompsonD, 1986, “Privatisation: A Policy in search of a rationale”Economic Journal9618–32
29.
KayJVickersJ, 1988, “Regulatory reform in Britain”Economic Policy7286–351
30.
KingD, 1987The New Right—Politics, Markets and Citizenship (Macmillan, London)
31.
LittlechildS, 1983The Regulation of British Telecommunications' ProfitabilityDepartment of Trade and Industry, 1 Victoria Street, London SW1H 0ET
32.
LittlechildS, 1993, “New developments in electricity regulation”, in Major Issues in Regulation Ed. BeesleyM (Institute for Economic Affairs, London) pp 119–140
33.
MooreJ, 1983, “Why privatise?”, in Privatisation and Regulation: The UK Experience Eds KayJMeyerCThompsonD (Clarendon Press, Oxford) pp 78–93
34.
MooreJ, 1985, “The success of privatisation”, in Privatisation and Regulation: The UK Experience Eds KayJMeyerCThompsonD (Clarendon Press, Oxford) pp 94–98
35.
NashC, 1994, “Rail transport regulation1‘, in Regulatory Review 1994 Eds VassPGillandT, Chartered Institute of Public Finance and Accountancy, 3 Robert Street, London WC2, pp 99–115
OPRAF, Office of Passenger Rail Franchising, Golding's House, 2 May's Lane, London SE1 2HB
38.
1994Annual Report, 1993–94
39.
1996aPassenger Rail Industry Overview
40.
1996b, “New rail fair policy”, Joint unpublished press release with Department of Transport, 15 May
41.
1997, “New rolling stock and service enhancements for Scotrail franchise”, unpublished news release, 25 February
42.
ORR, Office of the Rail Regulator, 1 Waterhouse Square, London EC1
43.
1994aCompetition for Passenger Railway Services: A Consultation Document
44.
1994bCompetition for Passenger Railway Services: A Policy Statement
45.
1995Annual Report, 1994–95
46.
1997aNew Service Opportunities for Passengers: A Consultation Document on the Development of the Competitive Framework of Passenger Rail Services
47.
1997b, “Rail regulator announces further fines for train operators as calls go unanswered”, unpublished news release, 23 October
48.
Railways Act1993Public General Acts—Elizabeth II chapter 43 (The Stationery Office, London)
49.
RovizziLThompsonD, 1992, “The regulation of product quality in the public utilities and the citizen's charter”Fiscal Studies1374–95
50.
Save Our Railways, 1996, “Rail forum notes”, unpublished information document, 19 October; Save Our Railways Campaign, Southbank House, Black Prince Road, London SE1
51.
SerpellD, 1983Railway Finances: Report of a Committee Chaired by Sir David Serpell (The Stationery Office, London)
52.
ShawJ, 1997, “Unpublished transcripts of interviews with TOCs' senior management and key rail-privatisation policymakers”; available for reference only, Contact the authors at the University of Plymouth
53.
SwiftJ, 1997a, “Regulation of the railways in Great Britain: 1993–1997 to 2000+”, Address to the European Union delegation of the French National Assembly and Senate, Paris, 13 March http://www.rail-reg.gov.uk
54.
SwiftJ, 1997b, “Regulating the railway in the public interest”, address to the Railway Study Association sessional meeting at the London School of Economics, 11 June; http://www.rail-reg.gov.uk
55.
The Economist1995, “How to privatise”, 11 March, page 15
56.
The Economist1996, “A great train cash”, 21 January, page 20
57.
The Guardian1995, “Minister promises cap on rail fares after sell-off”, 16 May, page 1
58.
The Guardian1997a, “Independents fume as British Gas gets price cuts go-ahead”, 3 September, page 18
59.
The Guardian1997b, “Half of electricity customers could switch their suppliers”, 16 September, page 17
60.
The Times1996, “Water, water everywhere but not much competition”, 6 April, page 38
61.
ThompsonG, 1990The Political Economy of the New Right (Pinter, London)
62.
Transport2000, 1989Rails for Sale? The Privatisation of British RailTransport 2000, Walkden House, 10 Melton Street, London NW1
63.
Wales and West Passenger Railway Limited, 1997Passengers' CharterWales and West Passenger Trains Ltd, Brunei House, 2 Fitzalan Road, Cardiff CF2 1SU
64.
WharmbyB, 1993, “The regulator's perspective of the electricity industry”, in Colloquium on Electricity Privatisation—Opportunities and Constraints Digest No. 1993/096 (Institute of Electrical Engineers, London) pp 1–3
65.
WiltshireK, 1987Privatisation: The British Experience (Longman Cheshire, Melbourne)
