Editing Railtrack (section)

==History==

===Background and founding===
[[File:British Rail 960001 at Norwich.jpg|thumb|Railtrack permanent way maintenance train]]

During the early 1990s, the [[Conservative Party (UK)|Conservative Party]] decided to pursue the [[privatisation of British Rail|privatisation]] of Britain's [[nationalisation|nationalised]] railway operator [[British Rail]].<ref>{{cite journal |url = https://www.socresonline.org.uk/7/1/strangleman.html |first = Tim |last = Strangleman |date = 2002 |title = Nostalgia for Nationalisation – the Politics of Privatisation |journal = Sociological Research Online |volume = 7 |number = 1 |pages = 92–105 |doi = 10.5153/sro.701 |s2cid = 144684740 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205024644/https://www.socresonline.org.uk/7/1/strangleman.html |url-status = live }}</ref><ref name = "trainselloff bbc2000">{{cite news |url = http://news.bbc.co.uk/1/hi/uk_politics/982037.stm |title = The great train sell-off: Who dunnit? |work = BBC News |date = 20 October 2000 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205033050/http://news.bbc.co.uk/1/hi/uk_politics/982037.stm |url-status = live }}</ref> A [[white paper]] released in July 1992 had called for a publicly-owned company to be primarily responsible for the railway infrastructure, including the tracks, signalling, and stations, while train operations would be [[Passenger rail franchising in Great Britain|franchise]]d out to various private companies.<ref>{{cite web |url = https://www.railwaysarchive.co.uk/docsummary.php?docID=11 |title = New Opportunities for the Railways: The Privatisation of British Rail |date = 14 July 1992 |publisher = [[Her Majesty's Stationery Office]] |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205022659/https://www.railwaysarchive.co.uk/docsummary.php?docID=11 |url-status = live }}</ref> However, [[Robert Horton (businessman)|Robert Horton]], who would become the first chairman of Railtrack and thus play a leading role through the early years of the organisation's existence, lobbied for the infrastructure-holding company to be privatised as well in order to maximise financial gains; this position was also supported by several figures within the Conservative government, such as the [[Chancellor of the Exchequer]] [[Kenneth Clarke]] and the [[Secretary of State for Transport]] [[Brian Mawhinney]].<ref name = "trainselloff bbc2000"/><ref name = "wolmar 2005">{{cite web |last = Christian |first = Wolmar |work = [[The Guardian]] |date = 16 July 2005 |url = http://www.theguardian.com/politics/2005/jul/16/publicservices.uk |title = Forget Byers: the scandal was in the original sell-off: Railtrack was heading for disaster long before the Hatfield crash |access-date = 12 December 2016 |archive-date = 29 August 2013 |archive-url = https://web.archive.org/web/20130829063606/http://www.theguardian.com/politics/2005/jul/16/publicservices.uk |url-status = live }}</ref>

On 1 April 1994, in accordance with recently passed [[Act of Parliament|legislation]], the newly-established Railtrack took control of Britain's railway infrastructure from British Rail.<ref name = "parliament summary2010"/><ref name = "sciencemuseum summary">{{cite web |url = https://collection.sciencemuseumgroup.org.uk/people/ap268/railtrack-group-plc |title = Railtrack Group PLC |website = sciencemuseumgroup.org.uk |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205022745/https://collection.sciencemuseumgroup.org.uk/people/ap268/railtrack-group-plc |url-status = live }}</ref> Its primary revenue sources were the track access charges levied on train operators and the [[lease]] of [[railway station|station]]s and [[Motive power depot|depot]]s. Furthermore, the company routinely received funding from the British government; the resulting money was largely spent on the railway network in accordance with plans laid out by the rail regulator.<ref name = "wolmar 2005"/><ref name = "parliament summary2010"/> Between its creation and late 1998, the company reportedly had a relatively calm relationship with its first economic regulator, [[John Swift QC]], who exercised a strategy of encouraging Railtrack to make its own commitments towards improvement.<ref>{{cite web |url = http://www.rail-reg.gov.uk/server/show/ConWebDoc.5537 |title = Railtrack to give further commitments |archive-url = https://web.archive.org/web/20080906175607/http://www.rail-reg.gov.uk/server/show/ConWebDoc.5537 |archive-date = 6 September 2008 |publisher = Office of Rail Regulation |date = 16 July 1998}}</ref> According to the railway historian [[Christian Wolmar]], the regulator had intentionally acted weak as to avoid complicating the creation and privatisation of Railtrack.<ref name = "wolmar 2005"/>
 
In January 1996, the British government confirmed its plans to privatise Railtrack for £2 billion with a total asset value of £4 billion.<ref name = "trainselloff bbc2000"/><ref name = "sciencemuseum summary"/> During May 1996, the company was [[initial public offering|floated]] on the [[London Stock Exchange]], albeit at a lower than planned price, allegedly in response to a threatened intervention by the [[Labour Party (UK)|Labour Party]].<ref>{{cite news |url = https://query.nytimes.com/gst/fullpage.html?res=940CE1D81739F931A35756C0A960958260 |title = Britain Puts Price On Railtrack Shares |newspaper = [[The New York Times]] |date = 2 May 1996 |access-date = 12 January 2012 |archive-date = 28 July 2020 |archive-url = https://web.archive.org/web/20200728132041/https://www.nytimes.com/1996/05/02/business/international-briefs-britain-puts-price-on-railtrack-shares.html |url-status = live }}</ref><ref name = "timeline guardian2002">{{cite news |url = https://www.theguardian.com/world/2002/jun/27/transport.uk |title = Timeline: Railtrack |newspaper = The Guardian |first1 = Mark |last1 = Tran |first2 = Sarah |last2 = Left |first3 = Philip |last3 = Pank |date = 27 June 2002 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205011030/https://www.theguardian.com/world/2002/jun/27/transport.uk |url-status = live }}</ref> This action effectively privatised Railtrack, although the company remained closely intertwined with the British government from an operational standpoint.<ref name = "wolmar 2005"/><ref name = "parliament summary2010">{{cite web |url = https://researchbriefings.files.parliament.uk/documents/SN01224/SN01224.pdf |title = Railways: Railtrack, 1994–2002 |date = 24 March 2010 |website = parliament.uk |first = Louise |last = Butcher |access-date = 5 December 2022 |archive-date = 19 December 2022 |archive-url = https://web.archive.org/web/20221219194843/https://researchbriefings.files.parliament.uk/documents/SN01224/SN01224.pdf |url-status = live }}</ref>

Railtrack's initial operations were disrupted by an [[industrial dispute]] that largely ran between June and September 1994;<ref>{{cite news |url = https://www.independent.co.uk/news/uk/the-rail-dispute-railtrack-chief-gives-no-surrender-message-horton-in-uncompromising-mood-as-union-clashes-with-br-over-the-number-of-trains-running-1447605.html |title = The Rail Dispute: Railtrack chief gives 'no surrender' message: Horton in uncompromising mood as union clashes with BR over the number of trains running |newspaper = The Independent |first = Barrie |last = Clement |date = 8 September 1994 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205012907/https://www.independent.co.uk/news/uk/the-rail-dispute-railtrack-chief-gives-no-surrender-message-horton-in-uncompromising-mood-as-union-clashes-with-br-over-the-number-of-trains-running-1447605.html |url-status = live }}</ref><ref>{{cite web |url = https://www.heraldscotland.com/news/12733066.tories-held-to-blame-for-rail-strike-labour-poll-backs-unions-stance/ |title = Tories held to blame for rail strike. Labour poll backs union & APOS's stance |publisher = heraldscotland.com |date = 5 July 1994 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205014211/https://www.heraldscotland.com/news/12733066.tories-held-to-blame-for-rail-strike-labour-poll-backs-unions-stance/ |url-status = live }}</ref> at one point, the company's management proposed dismissing all of its signallers, comprising roughly 4,600 staff.<ref>{{cite news |url = https://www.independent.co.uk/news/railtrack-proposes-mass-sackings-to-end-strike-1446103.html |title = Railtrack proposes mass sackings to end strike |newspaper = The Independent |first = Barrie |last = Clement |date = 1 September 1994 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205012913/https://www.independent.co.uk/news/railtrack-proposes-mass-sackings-to-end-strike-1446103.html |url-status = live }}</ref> Railtrack's first chief executive, John Edmonds, pursued a strategy of disposing of engineers and [[outsource|outsourcing]] their work wherever possible with the goal of reducing costs.<ref name = "wolmar 2005"/><ref name = "Edmonds obituarytelegraph">{{cite news |url = https://www.telegraph.co.uk/obituaries/2020/05/27/john-edmonds-executive-forced-radical-changes-british-rail/ |title = John Edmonds, executive who forced through radical changes at British Rail – obituary |newspaper = The Telegraph |date = 27 May 2020 |access-date = 4 December 2022 |archive-date = 4 December 2022 |archive-url = https://web.archive.org/web/20221204234626/https://www.telegraph.co.uk/obituaries/2020/05/27/john-edmonds-executive-forced-radical-changes-british-rail/ |url-status = live }}</ref> Within its first few years of operation, Railtrack appeared to perform well financially, annual profits were recorded while its share value quadrupled within a relatively short timeframe.<ref name = "wolmar 2005"/> Furthermore, during the mid-to-late 1990s, several high-profile investment projects in cooperation with train operators and other partners were announced by the company.<ref name = "sciencemuseum summary"/> However, as early as 1997, Railtrack was being criticised for paying little attention to infrastructure investment.<ref name = "Edmondreplace independent1997">{{cite news |url = https://www.independent.co.uk/news/business/beleaguered-railtrack-seeks-big-hitter-to-replace-edmonds-1257605.html |title = Beleaguered Railtrack seeks 'big hitter' to replace Edmonds |newspaper = The Independent |first1 = Sameena |last1 = Ahmad |first2 = Andrew |last2 = Yates |date = 22 June 1997 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205000549/https://www.independent.co.uk/news/business/beleaguered-railtrack-seeks-big-hitter-to-replace-edmonds-1257605.html |url-status = live }}</ref>

===Issues and controversies===
The [[Southall rail crash]] in 1997<ref>{{cite web |url = http://news.bbc.co.uk/onthisday/hi/dates/stories/september/19/newsid_2524000/2524283.stm |title = Six dead in Southall Train Disaster |publisher = BBC News |date = 19 September 1997 |access-date = 28 December 2008 |archive-date = 7 March 2008 |archive-url = https://web.archive.org/web/20080307133204/http://news.bbc.co.uk/onthisday/hi/dates/stories/september/19/newsid_2524000/2524283.stm |url-status = live }}</ref> and the [[Ladbroke Grove rail crash]] in 1999<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/uk/467919.stm |title = Ladbroke Grove Crash |publisher = BBC News |date = 11 October 1999 |access-date = 28 December 2008 |archive-date = 13 February 2008 |archive-url = https://web.archive.org/web/20080213193248/http://news.bbc.co.uk/1/hi/uk/467919.stm |url-status = live }}</ref> called into question the negative consequences that the fragmentation of the railway network had introduced to both safety and maintenance procedures. Railtrack was severely criticised for both its performance in improving Britain's railway infrastructure and for its safety record.<ref name = "parliament summary2010"/><ref>{{cite journal |url=https://e-space.mmu.ac.uk/22433/1/2008-01.pdf|title = The rise and fall of Railtrack PLC: an event study |journal = Applied Economics |volume = 43 |date = 2011 |issue = 23 |pages = 3143–3153 |doi = 10.1080/00036840903476379 |last1 = Glass |first1 = Anthony |s2cid = 154603770 }}</ref> It was observed in [[William Cullen, Baron Cullen of Whitekirk|Lord Cullen's]] inquiry into the Ladbroke Grove accident that trains would have been prevented from passing any signal at red had an [[Automatic Train Protection]] (ATP) system had been fitted and operational; however, ATP's national adoption, a recommendation made after the [[Clapham Junction rail crash]] in 1988, had been abandoned as the cost was considered to be excessive for the increase in safety.<ref>[http://www.railwaysarchive.co.uk/documents/HSE_Lad_Cullen001.pdf The Ladbroke Grove Rail Inquiry Part 1 by The Rt Hon Lord Cullen PC] {{Webarchive|url=https://web.archive.org/web/20221028132338/https://www.railwaysarchive.co.uk/documents/HSE_Lad_Cullen001.pdf |date=28 October 2022 }} (3.2 MB pdf file) – The Ladbroke Grove Rail Inquiry Part 1, paras 8.3–5.</ref>

[[File:Railtrack PW train.jpg|thumb|Railtrack rail cleaning train at Northam]]
One particular area of criticism was that the regulator was not tough enough on Railtrack and, as a result, the company had been able to abuse its [[monopoly]] position. In particular, Railtrack's customers, the passenger and freight train operators, were allegedly desperate for regulatory action to compel the company to improve its stewardship of the network and its performance. During 1993, Swift had been appointed rail regulator by the then Conservative transport secretary John MacGregor MP. When the [[Labour Party (UK)|Labour]] government took over after the [[1997 United Kingdom general election|general election in May 1997]], the new transport secretary (and deputy prime minister) [[John Prescott]] took a much harder line. When Swift's five-year term of office expired on 30 November 1998, he was not reappointed.<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/uk/176784.stm |title = Rail Regulator to go |publisher = BBC News |date = 21 September 1998 |access-date = 28 December 2008 |archive-date = 28 July 2020 |archive-url = https://web.archive.org/web/20200728132043/http://news.bbc.co.uk/2/hi/uk_news/176784.stm |url-status = live }}</ref>

After an interim period, during which [[Chris Bolt]], Swift's chief economic adviser and effective deputy, filled the regulator's position, in July 1999 a new rail regulator began a five-year term, starting a much tougher regulatory era.<ref>{{cite web |url = http://findarticles.com/p/articles/mi_qn4158/is_19990324/ai_n14218511 |title = City lawyer will be the new rail regulator |work = The Independent |date = 24 March 1999}} {{dead link|date=May 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> [[Tom Winsor]], the new rail regulator, had been Swift's general counsel (1993–95), and adopted a more interventionist and aggressive regulatory approach.<ref>{{cite web |url = https://www.theguardian.com/business/1999/mar/24/6 |title = Get-tough regulator named for Railways |work = The Guardian |date = 24 March 1999 |access-date = 12 December 2016 |archive-date = 14 April 2016 |archive-url = https://web.archive.org/web/20160414024132/http://www.theguardian.com/business/1999/mar/24/6 |url-status = live }}</ref> The relationship between the two parties was reportedly stormy at times; in April 2000, it was reported in ''The Guardian'' that "Railtrack is adopting a deliberate 'culture of defiance' against the rail regulator".<ref>{{cite web |url = https://www.theguardian.com/business/2000/apr/03/1 |title = Railtrack Declares War on Regulator |work = The Guardian |date = 3 April 2000 |access-date = 12 December 2016 |archive-date = 14 April 2016 |archive-url = https://web.archive.org/web/20160414024132/http://www.theguardian.com/business/2000/apr/03/1 |url-status = live }}</ref> [[Gerald Corbett]], Railtrack's chief executive at the time, and Winsor did not share the same vision for the network. Railtrack resisted regulatory action to improve its performance, and as the regulator probed ever more deeply, serious shortcomings in the company's stewardship of the network were revealed.<ref>{{cite web |url = https://www.lgcplus.com/archive/report-slams-railtracks-record-14-04-1999/ |title = Report slams Railtrack's record |website = lgcplus.com |date = 14 April 1999 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205025313/https://www.lgcplus.com/archive/report-slams-railtracks-record-14-04-1999/ |url-status = live }}</ref><ref>{{cite web |url = https://www.independent.co.uk/news/uk/home-news/prescott-orders-probe-into-rail-repairs-633912.html |title = Prescott orders probe into rail repairs |work = The Independent |date = 24 October 2000}} {{dead link|date=August 2021|bot=medic}}{{cbignore|bot=medic}}</ref> Winsor informed Railtrack that if it did not improve passenger train performance by 12.7 per cent by March 2000, the company would have to pay fines out of its profits.<ref name = "sciencemuseum summary"/>

On 17 October 2000, the [[Hatfield rail crash]] occurred;<ref>{{cite web |url = http://news.bbc.co.uk/onthisday/hi/dates/stories/october/17/newsid_2491000/2491425.stm |title = Four dead in Hatfield Train Crash |publisher = BBC News |date = 17 October 2000 |access-date = 28 December 2008 |archive-date = 7 March 2008 |archive-url = https://web.archive.org/web/20080307134427/http://news.bbc.co.uk/onthisday/hi/dates/stories/october/17/newsid_2491000/2491425.stm |url-status = live }}</ref> this would prove to be the defining moment in Railtrack's subsequent collapse.<ref name = "wolmar 2005"/> The cause of the fatal accident was quickly determined to be an infrastructure-related failure, and thus within Railtrack's remit.<ref name=times>{{cite news |url = http://find.galegroup.com/ttda/infomark.do?&source=gale&prodId=TTDA&userGroupName=wes_ttda&tabID=T003&docPage=article&searchType=BasicSearchForm&docId=IF502372356&type=multipage&contentSet=LTO&version=1.0 |first1 = Ian |last1 = Cobain |first2 = Michael |last2 = Harvey |first3 = Steve |last3 = Bird |title = Four killed and 33 hurt: mechanical failure blamed |newspaper = [[The Times]] |date = 18 October 2000 |access-date = 16 August 2016 |url-access = subscription |archive-date = 12 January 2021 |archive-url = https://web.archive.org/web/20210112000144/https://galeapps.gale.com/apps/auth?userGroupName=wes_ttda&origURL=https%3A%2F%2Fgo.gale.com%2Fps%2Fi.do%3Faction%3Dinterpret%26id%3DGALE%7CIF0502372356%26v%3D2.1%26u%3Dwes_ttda%26it%3Dr%26p%3DTTDA%26sw%3Dw&prodId=TTDA |url-status = live}}</ref> In Hatfield's aftermath, major repairs were undertaken across the whole British rail network which were estimated to have cost in the order of [[Pound sterling|£]]580 million.<ref name = "sciencemuseum summary"/> Railtrack had no idea how many potential Hatfields were waiting to happen, nor did they have any way of assessing the consequence of the speed restrictions they were ordering, largely because the majority of the engineering skill of British Rail had been sold off into separate maintenance and renewal companies. These restrictions brought the railway network to an almost total standstill and drew significant public ire.<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/scotland/989218.stm |title = Railtrack shuts down West Coast Main Line |publisher = BBC News |date = 25 October 2000 |access-date = 28 December 2008 |archive-date = 9 April 2003 |archive-url = https://web.archive.org/web/20030409215759/http://news.bbc.co.uk/1/hi/scotland/989218.stm |url-status = live }}</ref><ref name = "timeline guardian2002"/><ref>{{cite news |url = https://www.telegraph.co.uk/news/1482439/Hatfield-crash-was-disaster-waiting-to-happen.html |title = Hatfield crash "was disaster waiting to happen" |newspaper = [[The Daily Telegraph]] |date = 31 January 2005 |access-date = 22 August 2016 |archive-date = 10 February 2018 |archive-url = https://web.archive.org/web/20180210181641/http://www.telegraph.co.uk/news/1482439/Hatfield-crash-was-disaster-waiting-to-happen.html |url-status = live}}</ref> According to Wolmar, the Railtrack board had panicked in the wake of Hatfield.<ref>{{cite book |last = Wolmar |first = Christian |title = On the Wrong Line |publisher = Aurum Press |date = 2005 |isbn = 978-1-85410-998-9 |url = https://books.google.com/books?id=HSMzj9wC_soC&pg=PT290 |page = 290 |access-date = 19 March 2023}}</ref>

[[File:Railtrack sign.jpg|thumb|A sign identifying a bridge maintained by Railtrack]]

Around this time, regulatory and customer pressure on Railtrack audibly increased while the company's share price fell sharply as it became apparent that there were serious shortcomings in the company's ability to tackle and solve fundamental problems with its core activities.<ref>{{cite web |url = http://findarticles.com/p/articles/mi_qn4158/is_/ai_n14386329 |title = Railtrack drops out of FTSE 100 as shares fall 17% on brokers' note |work = The Independent |date = 6 June 2001}} {{dead link|date=May 2017 |bot=InternetArchiveBot |fix-attempted=yes }} </ref> During February 1999, a significant fall in Railtrack's share price occurred in response to the company's launch of a [[Bond (finance)|bond]] issue intended to finance the [[West Coast Main Line route modernisation|West Coast Main Line modernisation]] and [[Thameslink Programme]]s.<ref>{{cite web |url = https://www.independent.co.uk/news/business/pounds-400m-issue-derails-railtrack-share-price-1071597.html |title = £400m issue derails Railtrack share price |work = The Independent |date = 18 February 1999 |first = Philip |last = Thornton |access-date = 10 September 2017 |archive-date = 14 April 2016 |archive-url = https://web.archive.org/web/20160414024130/http://www.independent.co.uk/news/business/pounds-400m-issue-derails-railtrack-share-price-1071597.html |url-status = live }}</ref> The modernisation of the [[West Coast Main Line]] had suffered from spiralling costs, rising from an estimated £2 billion to roughly £10 billion.<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/uk/565507.stm |title = Repair costs spiral to £5bn |publisher = BBC News |date = 15 December 1999 |url-status = live |archive-url = https://web.archive.org/web/20131110021245/http://news.bbc.co.uk/2/hi/uk_news/565507.stm |archive-date = 10 November 2013 |df = dmy-all}}</ref> The modernisation programme had failures that were technical as well as managerial, such as the [[moving block]] signalling apparatus being immature for such a busy mixed-traffic mainline.<ref>{{cite web |url = https://www.theguardian.com/politics/2004/apr/01/transport.uk |title = The main players in the £10bn rail fiasco |work = The Guardian |first = James |last = Meek |date = 1 April 2004 |access-date = 5 December 2022 |archive-date = 13 September 2014 |archive-url = https://web.archive.org/web/20140913131947/http://www.theguardian.com/politics/2004/apr/01/transport.uk |url-status = live }}</ref><ref>{{Cite web |title = The Modernisation of the West Coast Main Line |url = https://www.nao.org.uk/report/the-modernisation-of-the-west-coast-main-line/ |access-date = 21 July 2021 |website = [[National Audit Office (United Kingdom)|National Audit Office]] |date = 22 November 2006 |language = en-gb |archive-date = 21 July 2021 |archive-url = https://web.archive.org/web/20210721150856/https://www.nao.org.uk/report/the-modernisation-of-the-west-coast-main-line/ |url-status = live}}</ref> In 2000, reports emerged that Railtrack might not be able to go through with its planned commitment to purchase section 2 of [[High Speed 1]], resulting in disruption and uncertainty for that programme as well.<ref>{{cite news |url = https://www.theguardian.com/business/2000/may/30/7 |title = Railtrack funding of Channel rail link in doubt again |first = Keith |last = Harper |date = 30 May 2000 |newspaper = The Guardian |access-date = 1 August 2009 |location = London |archive-date = 8 May 2014 |archive-url = https://web.archive.org/web/20140508231457/http://www.theguardian.com/business/2000/may/30/7 |url-status = live }}</ref><ref>{{cite news |url = https://www.independent.co.uk/news/uk/home-news/railtrack-could-ditch-new-channel-rail-link-702632.html |archive-url = https://web.archive.org/web/20091201134427/http://www.independent.co.uk/news/uk/home-news/railtrack-could-ditch-new-channel-rail-link-702632.html |url-status = dead |archive-date = 1 December 2009 |title = Railtrack could ditch new Channel rail link |first = Michael |last = Harrison |date = 16 January 2001 |newspaper = The Independent |access-date = 1 August 2009 |location = London}}</ref><ref>{{cite news |url = https://www.independent.co.uk/news/uk/home-news/railtrack-to-lose-its--newline-monopoly-689651.html |title = Railtrack to lose its new-line monopoly |first = Colin |last = Brown |date = 1 April 2001 |newspaper = The Independent |access-date = 1 August 2009 |location = London}}{{dead link|date=August 2021|bot=medic}}{{cbignore|bot=medic}}</ref>

In February 2001, Steve Marshall, the company's chairman, stated that Railtrack could have a net debt of approximately £8 billion by 2003.<ref name = "sciencemuseum summary"/> During May 2001, Railtrack announced that, despite making a pre-tax profits before exceptional expenses of £199m, the £733m of costs and compensation paid out over the Hatfield crash plunged Railtrack from profit to a loss of £534m.<ref>{{cite news |title = Railtrack in line for all-clear on borrowing |first = Arthur |last = Leathley |newspaper = [[The Times]] |date = 25 May 2001 }}</ref> This loss compelled the organisation to approach the government for funding, which it controversially used to pay a £137m [[dividend]] to its [[shareholder]]s in May 2001.<ref>{{cite news |url = https://www.telegraph.co.uk/finance/2720891/Railtrack-shares-dive-to-all-time-low.html |title = Railtrack shares dive to all time low |work=The Daily Telegraph |date = 6 June 2001 |place = London |first = Alistair |last = Osborne |access-date = 20 May 2010 |url-status = live |archive-url = https://web.archive.org/web/20110312232151/http://www.telegraph.co.uk/finance/2720891/Railtrack-shares-dive-to-all-time-low.html |archive-date = 12 March 2011 |df = dmy-all}}</ref> Months later, Railtrack sought another bailout from the government.<ref name = "wolmar 2005"/><ref name = "timeline guardian2002"/>

===Administration===
On 7 October 2001, Railtrack plc was placed into railway administration under the Railways Act 1993, following an application to the [[High Court of Justice of England and Wales|High Court]] by the then [[Secretary of State for Transport|Transport Secretary]], [[Stephen Byers]].<ref>{{cite web |url = https://www.independent.co.uk/news/uk/home-news/railtrack-goes-bankrupt-with-debts-of-acircpound33bn-630604.html |title = Railtrack goes bankrupt with debts of £3.3bn |work = The Independent |date = 8 October 2001 |archive-url = https://web.archive.org/web/20110312220300/http://www.independent.co.uk/news/uk/home-news/railtrack-goes-bankrupt-with-debts-of-acircpound33bn-630604.html |archive-date = 12 March 2011 }}</ref><ref>{{cite web |url = https://www.christianwolmar.co.uk/2001/10/rail-420-why-railtracks-fall-was-a-revolution-waiting-to-happen/ |title = Rail 420: Why Railtrack's fall was a revolution waiting to happen |website = christianwolmar.co.uk |date = 17 October 2001 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205025535/https://www.christianwolmar.co.uk/2001/10/rail-420-why-railtracks-fall-was-a-revolution-waiting-to-happen/ |url-status = live }}</ref> This was effectively a form of [[bankruptcy protection]] that allowed the railway network to continue operating despite the financial problems of the operator. The parent company, Railtrack Group plc, was not put into administration and continued operating its other subsidiaries, which included property and telecommunications interests. If this action had not been taken, rail services throughout Britain might have entirely stopped for a time.<ref name = "wolmar 2005"/><ref>{{cite web |url = https://www.nytimes.com/2001/10/13/business/worldbusiness/IHT-networks-failure-is-seen-as-cautionary-tale-for-eu.html |title = Network's Failure Is Seen As Cautionary Tale for EU : Railtrack's Slide Leaves Britain Sifting Options |work = New York Times |first = Eric |last = Pfanner |date = 13 October 2001 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205015907/https://www.nytimes.com/2001/10/13/business/worldbusiness/IHT-networks-failure-is-seen-as-cautionary-tale-for-eu.html |url-status = live }}</ref>

For most of the year in administration, the government's position had been that the new company would have to live within the existing regulatory settlement (£14.8&nbsp;billion for the five years 2001–2006). However, it soon became obvious that that was impossible, and that the aftermath of the Hatfield crash had revealed that the network required significantly more money for its operation, maintenance and renewal. It was reported on 23 November 2001, that a further £3.5&nbsp;billion might be needed to keep the national railway network running, a sum disputed by [[Ernst & Young]], the administrators.<ref>{{cite web |url = https://www.theguardian.com/uk/2001/nov/24/politics.transport |title = Blair told: find £3.5bn or the railways collapse |work = The Guardian |date = 24 November 2001 |access-date = 12 December 2016 |archive-date = 10 May 2017 |archive-url = https://web.archive.org/web/20170510212153/https://www.theguardian.com/uk/2001/nov/24/politics.transport |url-status = live }}</ref><ref name = "timeline guardian2002"/> During February 2002, the [[European Commission]] approved the provision of [[state aid]] to the ailing Railtrack in order to maintain operations.<ref>{{cite web |url = https://euobserver.com/news/5164 |title = State aid to Railtrack approved |website = euobserver.com |date = 13 February 2003 |first = Blake |last = Evans-Pritchard |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205015907/https://euobserver.com/news/5164 |url-status = live }}</ref> 

To get Railtrack out of administration, the government had to go back to the High Court and present evidence that the company was no longer insolvent. The principal reason given by the government to the court for this assertion was the decision of the [[Rail Regulator|rail regulator]] – announced on 22 September 2002 – to carry out an interim review of the company's finances, with the potential to advance significant additional sums to the company.<ref>{{cite web |url = https://www.telegraph.co.uk/finance/2828365/Winsors-pointer-to-rail-billions.html |title = Windsor's pointer to rail billions |publisher = The Daily Telegraph |date = 25 September 2002 |access-date = 2 April 2018 |archive-date = 1 March 2018 |archive-url = https://web.archive.org/web/20180301015040/https://www.telegraph.co.uk/finance/2828365/Winsors-pointer-to-rail-billions.html |url-status = live }}</ref> The High Court accepted that the company was not therefore insolvent, and the railway administration order was discharged on 2 October 2002.<ref>{{cite web |url = https://www.theguardian.com/business/2002/oct/02/transportintheuk |title = Judge jumps Railtrack points |work = The Guardian |first1 = Andrew |last1 = Clark |date = 2 October 2002 |access-date = 5 December 2022 |archive-date = 5 December 2022 |archive-url = https://web.archive.org/web/20221205014928/https://www.theguardian.com/business/2002/oct/02/transportintheuk |url-status = live }}</ref><ref>{{cite web |url = https://issuu.com/raildirector/docs/insidetrack_september_full |title = Who pays for Enhancements? |publisher = Inside Track |date = 1 September 2021 |page = 8 |access-date = 5 December 2022}}</ref>

===Transfer of assets to Network Rail===
[[Network Rail]] was formed with the principal purpose of acquiring and owning Railtrack plc. Originally the Government allowed private companies to bid for Railtrack plc. However, with limited availability of financial data on Railtrack, the political implications of owning the company and the very obvious preference of the government that the national railway network should go to Network Rail, no bidders apart from Network Rail were forthcoming, and Network Rail bought Railtrack plc on 3 October 2002.<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/business/2267597.stm |title = Network Rail closer to Railtrack takeover |publisher = BBC News |date = 18 September 2002 |access-date = 20 May 2010 |url-status = live |archive-url = https://web.archive.org/web/20090917043501/http://news.bbc.co.uk/2/hi/business/2267597.stm |archive-date = 17 September 2009 |df = dmy-all}}</ref><ref>{{cite journal |title = An illusion of success: The consequences of British rail privatisation |first = Andrew |last = Bowman |journal = Accounting Forum |volume = 39 |issue = 1 |date = March 2015 |pages = 51–63|doi = 10.1016/j.accfor.2014.10.001 |s2cid = 154910139 |doi-access = free }}</ref> Railtrack plc was subsequently renamed to ''Network Rail Infrastructure Limited''.<ref>{{cite web |url = http://www.busman.qmul.ac.uk/research/researchcentres/Thecentreformanagementandorganisationalhistory/148170.pdf |page = 18 |title = Accounting for Producer Needs: The case of Britain's rail infrastructure |publisher = Centre for Management and Organisational History |access-date = 12 October 2015 |url-status = dead |archive-url = https://web.archive.org/web/20160304075330/http://www.busman.qmul.ac.uk/research/researchcentres/Thecentreformanagementandorganisationalhistory/148170.pdf |archive-date = 4 March 2016 }}</ref>

Network Rail's acquisition of Railtrack plc was welcomed at the time by groups that represented British train passengers. The attitude of Railtrack's customers – the passenger- and freight-train operators – was much more cautious, especially as they were wary of a corporate structure under which shareholders' equity was not at risk if the company's new management mis-managed its affairs.<ref>{{cite web |url = https://www.theguardian.com/business/2002/sep/16/transportintheuk.society |title = Think tank lays into Network Rail structure |work = The Guardian |date = 16 September 2002 |access-date = 12 December 2016 |archive-date = 1 December 2016 |archive-url = https://web.archive.org/web/20161201212818/https://www.theguardian.com/business/2002/sep/16/transportintheuk.society |url-status = live }}</ref>

===Liquidation===
On 18 October 2002, Railtrack's parent company, Railtrack Group, was placed into members' voluntary liquidation as RT Group.<ref>{{cite web |url = http://www.rtgroup.co.uk/liquidation/liquidation.html |title = Liquidation |publisher = RT Group |archive-url = https://archive.today/20021024093234/http://www.rtgroup.co.uk/liquidation/liquidation.html |archive-date = 24 October 2002 }}</ref> The Railtrack business (and its £7&nbsp;billion debt) had been sold to [[Network Rail]] for [[Pound sterling|£]]500 million, and the various diversified businesses it had created to seek to protect itself from the loss-making business of running a railway were disposed of to various buyers.<ref name=payout>{{cite web |url = http://news.bbc.co.uk/1/low/business/2270228.stm |title = Railtrack suggests bigger payout |publisher = BBC News |date = 20 September 2002 |access-date = 28 December 2008 |archive-date = 11 June 2004 |archive-url = https://web.archive.org/web/20040611142816/http://news.bbc.co.uk/1/low/business/2270228.stm |url-status = live }}</ref> £370&nbsp;million held by Railtrack Group was frozen at the time the company went into administration and was earmarked to pay Railtrack shareholders an estimated 70p a share in compensation. The Group's interest in the partially built [[High Speed 1|High Speed&nbsp;1]] line was also sold for £295m.<ref name=payout/> During December 2002, Railtrack Group was delisted from the London Stock Exchange; that same month, the company announced an agreement to sell its remaining property interests, RT Group Developments, to the property developer [[Hammerson]] in exchange for £63 million.<ref>{{cite web |url = https://www.independent.co.uk/news/business/news/railtrack-makes-final-departure-from-stock-market-137560.html |title = Railtrack makes final departure from stock market |work = The Independent |first = Liz |last = Vaughan-Adams |date = 28 December 2002 |access-date = 5 December 2022 |archive-date = 29 July 2021 |archive-url = https://web.archive.org/web/20210729023924/https://www.independent.co.uk/news/business/news/railtrack-makes-final-departure-from-stock-market-137560.html |url-status = live }}</ref>