Labour

Network Rail - determination to press ahead with massive bonuses shows why rail industry is not working for passengers - Eagle

Maria Eagle MP, Labour's Shadow Transport Secretary, responding to leaked details of the revised Network Rail bonus scheme, said:

"Passengers facing annual fare rises of up to 11 per cent will be staggered that our rail industry could be so out of touch and doesn’t recognise how times have changed. This is yet another example of why the debate that has begun over the future of the rail industry is so necessary. Passengers expect Network Rail to be focussing on improving train punctuality not obsessing with their already sizeable pay packets. Additional payments on top of salaries should be for exceptional performance, not the rule, and the bonus culture that has existed for too long in too many companies must come to an end.

"It’s clear that the taxpayer funded Network Rail has learnt nothing from the public outcry the last time they attempted to get away with approving massive bonus payments to senior managers. For Network Rail’s Remuneration Committee to rename bonuses as retention payments and tell the AGM that bosses will quit if they don’t get these pay-outs is a completely unacceptable way to put pressure on the body that exists to hold the company to account. Network Rail must now reassure passengers that it has no intention of paying out bonuses in the light of the warnings it has received from the Rail Regulator over its performance.

"Justine Greening must now confirm whether she has fulfilled her commitment to appoint a representative onto Network Rail’s Remuneration Committee and, if so, whether they voted to for this bonus plan and whether Ministers were consulted. If the Transport Secretary failed to appoint or use her representative to block this plan then it seems, yet again, that she has been caught asleep on the job and failed in her duty to stand up for passengers and protect taxpayers money. The Government must finally set out how they intend to meet the promise made in the Coalition Agreement to address Network Rail’s accountability gap."