Labour has raised the alarm over the possible sale of major rail stations after a Network Rail press release implied this was a possibility.
A footnote in a Network Rail press release states: ‘Network Rail has embarked upon a comprehensive programme of examining its assets and looking at ways to realise value that will help fund the company’s Railway Upgrade Plan. These include: […] Major stations’.
The statement comes after previous newspaper reports suggested that stations including London Waterloo, Reading, Leeds and Edinburgh Waverley could be in line to be sold.
Network Rail also announced on Friday that it was assessing interest in its electrical power assets as a way of funding investment.
When questioned by Transport Network, a spokesperson for Network Rail confirmed the press release accurately reflected the organisation’s position.
Waterloo Station (pictured) potentially for sale according to reports
If the organisation is considering selling major stations, this appears to be a change in its previous strategy for filling a multi-billion pound hole in its finances.
Last November, a review by Network Rail chairman Sir Peter Hendy found that the majority of its improvement programme could go ahead with extra investment generated primarily from the sale of ‘non-core assets’.
These were thought to include railway arch space, disused depots and shop space in bigger stations.
The review recognised the implications of selling revenue-generating assets: ‘Less income from property means more will have to come from elsewhere.’
It went on to claim the plan for the sale of non-core assets, 'represents the best balance in delivering value for money'.
Shadow transport secretary Lilian Greenwood said: ‘There are real fears that passengers and taxpayers will pay the price for this firesale of Network Rail’s assets. These plans will leave Network Rail without valuable long-term sources of revenue which could push up both fares and the overall cost of running the railway.
‘This sale is going ahead because the cost of major projects has skyrocketed, but Tory Ministers kept quiet about the scandal until after the election. They should now focus on addressing the chronic fragmentation of the rail network, not on selling-off and breaking up Network Rail.’
