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Network Rail

I have made two points absolutely clear. First, bonus setting is not for the Government; it is not my role as Secretary of State for Transport to set the bonuses of Network Rail's management. However, I sympathise with those who, understandably, feel angry about the delays and overruns in the Christmas and new year period. Secondly, bonuses are set by Network Rail's remuneration committee, which is chaired by an independent non-executive director and acts according to a management incentive plan that takes into account whether a licence has been breached or is likely to be breached in future. The rail regulator is examining that issue and his interim findings will be published at the end of February. I hope that, at that point, everyone will be clear about whether there was a breach of the Network Rail licence. As I was saying, today we have the fastest-growing railway in Europe. When the Conservatives were in power, the railways were faced with the problem of managing decline; now, for the first time since the war, we are planning for growth. Why? First, the stability of our economy has enabled this Government to double spending on our railways over the past 10 years; and secondly, we took the tough decisions required to clear up the mess left after privatisation, when the state of the track had deteriorated dramatically, confidence was shattered, and costs had spiralled out of control. The Railways Act 2005 put in place a new structure that has, for once, got a grip on costs and is delivering significant improvements in performance. For the first time in 50 years, we have a stable structure for our railways on a secure financial footing, with firm, costed plans that should enable us to double the size of the railways over the next 30 years.