Open main menu
Home
Random
Recent changes
Special pages
Community portal
Preferences
About Wikipedia
Disclaimers
Incubator escapee wiki
Search
User menu
Talk
Dark mode
Contributions
Create account
Log in
Editing
Railtrack
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
===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 Β£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 (Β£14.8 billion for the five years 2001β2006). 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 Β£3.5 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 Β£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]] β announced on 22 September 2002 β 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>
Edit summary
(Briefly describe your changes)
By publishing changes, you agree to the
Terms of Use
, and you irrevocably agree to release your contribution under the
CC BY-SA 4.0 License
and the
GFDL
. You agree that a hyperlink or URL is sufficient attribution under the Creative Commons license.
Cancel
Editing help
(opens in new window)