Railways Act 1993
Encyclopedia
The Railways Act 1993 was introduced by John Major
's Conservative
government and passed on 5 November 1993. It provided for the restructuring of the British Railways Board
(BRB), the public corporation that owned and operated the national railway system. A few residual responsibilities of the BRB remained with BRB (Residuary) Ltd.
John MacGregor to transfer separated parts of the railway to the private sector. He franchised
passenger rail services to private companies including Virgin
, Connex (now known as Veolia Transport
) and the coach companies Stagecoach
and National Express
, and floated the national railway track and signalling company Railtrack
on the London Stock Exchange in 1996. He sold British Rail's track maintenance and renewal operations to private companies, with contracts to provide infrastructure services to Railtrack. He sold the three rolling stock leasing companies or ROSCOs
, owners of the passenger rolling stock
, to management buyout
teams.
(dealing with the monopoly and dominant elements of the industry, principally Railtrack
(now Network Rail
)) and the Director of Passenger Rail Franchising
, whose role was to sell passenger rail franchises to the private sector. The Director of Passenger Rail Franchising was replaced in 2001 by the Strategic Rail Authority
. When the SRA was abolished in 2006 franchising were taken over by the Secretary of State for Transport
. The statutory position of Rail Regulator was abolished in July 2004 and his functions were taken over by the Office of Rail Regulation
.
, the Railways and Transport Safety Act 2003
and the Railways Act 2005
.
. Some commentators regard the creation of Network Rail and its taking maintenance in-house as the beginning of the reversal of rail privatisation.
John Major
Sir John Major, is a British Conservative politician, who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990–1997...
's Conservative
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
government and passed on 5 November 1993. It provided for the restructuring of the British Railways Board
British Railways Board
The British Railways Board was a nationalised industry in the United Kingdom that existed from 1962 to 2001. From its foundation until 1997, it was responsible for most railway services in Great Britain, trading under the brand names British Railways and, from 1965, British Rail...
(BRB), the public corporation that owned and operated the national railway system. A few residual responsibilities of the BRB remained with BRB (Residuary) Ltd.
BRB (Residuary) Ltd.
BRB Limited is the successor to the British Railways Board. It is a private company limited by shares, with 100% of the issued share capital owned by the Secretary of State for Transport.-Background:...
Overview
The legislation enabled the Secretary of State for TransportSecretary of State for Transport
The Secretary of State for Transport is the member of the cabinet responsible for the British Department for Transport. The role has had a high turnover as new appointments are blamed for the failures of decades of their predecessors...
John MacGregor to transfer separated parts of the railway to the private sector. He franchised
Rail franchising in Great Britain
Rail franchising in Great Britain was created by the Railways Act 1993. Passenger services are franchised, for a limited period, to train operating companies...
passenger rail services to private companies including Virgin
Virgin Trains
Virgin Trains is a train operating company in the United Kingdom. It operates long-distance passenger services on the West Coast Main Line between London, the West Midlands, North West England, North Wales and Scotland...
, Connex (now known as Veolia Transport
Veolia Transport
Veolia Transport is the international transport services division of the French-based multinational company Veolia Environnement...
) and the coach companies Stagecoach
Stagecoach
A stagecoach is a type of covered wagon for passengers and goods, strongly sprung and drawn by four horses, usually four-in-hand. Widely used before the introduction of railway transport, it made regular trips between stages or stations, which were places of rest provided for stagecoach travelers...
and National Express
National Express
National Express Coaches, more commonly known as National Express, is a brand and company, owned by the National Express Group, under which the majority of long distance bus and coach services in Great Britain are operated,...
, and floated the national railway track and signalling company Railtrack
Railtrack
Railtrack was a group of companies that owned the track, signalling, tunnels, bridges, level crossings and all but a handful of the stations of the British railway system from its formation in April 1994 until 2002...
on the London Stock Exchange in 1996. He sold British Rail's track maintenance and renewal operations to private companies, with contracts to provide infrastructure services to Railtrack. He sold the three rolling stock leasing companies or ROSCOs
Rolling Stock Operating Company
In the United Kingdom, a Rolling Stock Operating Company owns and maintains railway engines and carriages which are leased to Train Operating Companies who actually operate the trains....
, owners of the passenger rolling stock
Rolling stock
Rolling stock comprises all the vehicles that move on a railway. It usually includes both powered and unpowered vehicles, for example locomotives, railroad cars, coaches and wagons...
, to management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
teams.
Regulation
The legislation created a new regulatory regime for the railways, with the establishment of the Rail RegulatorRail Regulator
The Rail Regulator was a statutory office, created with effect from 1 December 1993 by section 1 of the Railways Act 1993, for the independent economic regulation of the British railway industry....
(dealing with the monopoly and dominant elements of the industry, principally Railtrack
Railtrack
Railtrack was a group of companies that owned the track, signalling, tunnels, bridges, level crossings and all but a handful of the stations of the British railway system from its formation in April 1994 until 2002...
(now Network Rail
Network Rail
Network Rail is the government-created owner and operator of most of the rail infrastructure in Great Britain .; it is not responsible for railway infrastructure in Northern Ireland...
)) and the Director of Passenger Rail Franchising
Director of Passenger Rail Franchising
The Director of Passenger Rail Franchising is a statutory office created in 1993 by the Railways Act 1993 and usually called the Franchising Director...
, whose role was to sell passenger rail franchises to the private sector. The Director of Passenger Rail Franchising was replaced in 2001 by the Strategic Rail Authority
Strategic Rail Authority
In existence from 2001 to 2006, the Strategic Rail Authority was a non-departmental public body in the United Kingdom set up under the Transport Act 2000 to provide strategic direction for the railway industry....
. When the SRA was abolished in 2006 franchising were taken over by the Secretary of State for Transport
Secretary of State for Transport
The Secretary of State for Transport is the member of the cabinet responsible for the British Department for Transport. The role has had a high turnover as new appointments are blamed for the failures of decades of their predecessors...
. The statutory position of Rail Regulator was abolished in July 2004 and his functions were taken over by the Office of Rail Regulation
Office of Rail Regulation
The Office of Rail Regulation is a statutory board which is the combined economic and safety regulatory authority for Great Britain's railway network. It was established on 5 July 2004 by the Railways and Transport Safety Act 2003, replacing the Rail Regulator...
.
Amendments
The legislation has been amended several times, most significantly by the Transport Act 2000Transport Act 2000
The Transport Act 2000 is an Act of the Parliament of the United Kingdom. It provided for a number of measures regarding transport in Great Britain, most notably, the first major change in the structure of the privatised railway system established under the Railways Act 1993...
, the Railways and Transport Safety Act 2003
Railways and Transport Safety Act 2003
The Railways and Transport Safety Act 2003 is an Act of the United Kingdom Parliament-Purposes of the Act:The purposes of the Act include:-*the creation of the Rail Accident Investigation Branch...
and the Railways Act 2005
Railways Act 2005
The Railways Act 2005 is an Act of the Parliament of the United Kingdom concerning the regulatory structure for railways in the United Kingdom.- Overview :...
.
Railtrack
Railtrack collapsed in highly controversial circumstances in October 2001, and in October 2002 the company emerged from railway administration, a special state of insolvency for railway companies created by the Railways Act 1993, as Network RailNetwork Rail
Network Rail is the government-created owner and operator of most of the rail infrastructure in Great Britain .; it is not responsible for railway infrastructure in Northern Ireland...
. Some commentators regard the creation of Network Rail and its taking maintenance in-house as the beginning of the reversal of rail privatisation.