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Part of the debate – in Westminster Hall at 12:11 pm on 7th November 2006.

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Photo of Kelvin Hopkins Kelvin Hopkins Labour, Luton North 12:11 pm, 7th November 2006

The hon. Gentleman talks about procuring trains, but is it not a fact that some of the biggest costs are the vast rental costs that are charged by the ROSCOs—the rolling stock leasing companies, which are essentially the banks—to the train operators? The costs sometimes amount to 30 per cent. every year of the value of the trains and stock, which can themselves last for 20 to 30 years.


Robert Battersby
Posted on 18 Nov 2006 9:45 pm (Report this annotation)

The 30% figure seems right, and that's why the ROSCOs were snapped up by the banks. They know a cash cow when they see it! There are a lot of Corporate vested interests in the present fragmented dysfunctional structure. The Labour leadership perpetuate this to keep their Corporate Masters happy. (The Trade Unions are no longer listened to by the Blair camp). Not everyone's happy. The TOCs are being hammered. I noticed in Rail Magazine they are lobbying the Government for some Rail Electrification! It might ease capacity problems as well as allow more types of stock to use a route. Now, there's a profanity for the Diesel Dummies in the DfT to contemplate!