Should Britains Railways Be Provided By The Public Or Private Sector
Should Britains Railways be Provided by The Public or Private Sector
Firstly it is necessary to outline the reasons behind having either public or private sector provision, by doing this we can see which advantages have the closest ties with the railway situation.
Reasons for a Privatised Railway
? Increased investment ? Public railway has little inclination to invest because it doesn?t have commercial objectives.
? Competition ? The existence of competition means that companies have to perform as efficiently and effectively as possible to stay in the industry, there is no room for complacent companies. Competition can lead to a reduction in price for customers because the companies are forced to have lower prices to attract customers.
? Choice ? In private markets customers have a choice, giving companies more reason to perform well. The companies are more accountable for their actions.
? Too costly to re-nationalise ? Re-nationalisation would be costly because existing companies would need compensating.
? Governments don?t want the responsibility ? If a re-nationalisation program fails then the government who put it in place would be accountable and votes will be lost.
Reasons for a Public Railway
? Safety ? Because of the lack of competition, safety can be increased because cost cutting
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