How much?!!

Andrew Gilligan in the Daily Telegraph has done it again...  In his column in yesterday's Daily Telegraph ("The personal agony that will forever be public transport") he launched his second attack on our railway system in a fortnight (see also "High Speed rail?").

In this second article he suggests again that very little of the investment in railways since privatisation has gone into increasing capacity (he suggests that much of it has been spent on repainting carriages!)  This mention of subsidies interested me, so I did a quick search on Google and what I found shocked me. 

On the Investis website I found a summary of the subsidy payments that London Midland are receiving from the government (Go Ahead Group - London Midland operating review).   The total changes year on year from the start of the franchise to the end, kicking off with £203 million in 2008 dropping to £155 million in 2015, but for 2010 it's £185 million. 

For anyone who might be thinking that £185 million doesn't sound so bad given the scope and scale of London Midland's services, please do bear in mind that Network Rail separately receives government support for the maintenance and development of the railway infrastructure (I figure that identifying how much that would amount to for the London Midland area is an impossible task for an outsider).

Finding the above then left me wondering how much the senior management at London Midland were receiving in salary and other rewards.  A quick look didn't reveal any detail for London Midland's top executives, but I did find a useful summary on the Reuters website for the Go-Ahead Group (London Midland's parent company):

• Keith Ludeman, Group CEO - £916,000
• Nicholas Swift, Group Finance Director - £470,000. 

These gentlemen of course oversee the running of a number of rail and bus companies (plus Meteor, the company operating Bletchley's car park, and other transport-related businesses), and we need to be careful because whenever we get into a debate about how much the senior executives are getting paid there is no doubt that envy has a major influence on people's opinions. 

Quite honestly, I wouldn't care what the people who were responsible for the running of the trains that I use to get me into London were being paid as long as the service was satisfactory and offered value for money, but:

1. I don't believe that the train service that we have between Bletchley and London Euston is anything like as good as the one that we deserve
2. I don't believe we do get value for money given what we pay directly for our season tickets (in my case £3332 pa) and indirectly as tax-payers (this year's £185,000,000 susbsidy) 

Come back British Rail, all is forgiven (Andrew Gilligan does suggests in the 10/06/2010 article that the improvements in punctuality that we've seen have only taken us back to BR levels and that the only reason that they've managed that is because of the slack that we've now got built into the timetables).