Office of Rail Regulation: nationalised rail firm is most efficient in the country

East Coast gets a net subsidy of just 1 per cent, ORR reports.

The Financial Times, that most fervently socialist of newspapers, reports that the East Coast franchise – the only one of the British rail franchises owned by the state – is outdoing the private sector. Mark Odell reports:

The state-run East Coast mainline has emerged as the most efficiently run rail franchise in terms of its reliance on taxpayer funding, raising questions about a recent government decision to privatise the operation.

The ORR found that among the rail franchises that make net payments to the Treasury, the East Coast mainline, which has been run by the state since November 2009, is reliant on just 1 per cent of government funding once cost of infrastructure is taken into account.

The reliance on state funding of the other nine franchises that make net payments to the government ranges from 3 per cent to 36 per cent.

The news comes shortly after the government announced plans to refranchise East Coast to the private sector. Odell reports that those plans were "designed to draw a line under the months of chaos in the UK rail industry triggered by the West Coast fiasco", but they were widely seen as a spoiler for Labour's plans for the railway system, which would have kept the franchise in public hands.

As Railnews writes, "a new East Coast franchise, once let, would be difficult and expensive to reverse until it had run its natural term, which could be ten years or more." That's quite a long time to bind the country into a style of management which seems to be sub-par.

Maria Eagle, Labour's shadow transport secretary, used the report to double-down on that position:

Considering the East Coast service makes one of the highest annual payments to government, receives the least subsidy and is the only route on which all profits are reinvested in services, it makes no sense for the government to prioritise this privatisation over getting the rest of the industry back on track.

Of course, even "privatising" East Coast might not be quite what it sounds like. As Christian Wolmar wrote in 2011:

In a way, it’s funny. The Brpitish railway system is slowly being renationalised, but not by our own government. Rather, it is being taken over by foreign state-owned railways that now have an interest in almost half the franchises, and in one of the three open access operators as well.

That's as true now as it has ever been. Not one of the three companies bidding to run the privatised parts of Crossrail – operations will still be run by the nationalised Transport for London – is privately held. Instead, the largest transport project in decades will be run by a partnership of a British state-owned firm and either the French, Dutch or German national operator.

The free market: it's a funny place, sometimes.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.