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Privatisation Of The British Rail

Privatisation Of The British Rail

a) Privatisation & its Main benefits

Privatization is the implementation of a decision to sell companies owned by the State to private individuals/ companies.Benefits of privatization are making the erstwhile public sector commercial enterprise survive in competitive markets through better efficiency, higher productivity, improved product quality and customer service, and reduction of waste and leakages due to State ownership. (Hillman, 2008)

There are no limitations of privatization except that hitherto unproductive or less productive labor would have learn afresh the art of servivng through hard work and excellence.

privatisation does not work,proven fact,-money for shareholders only-profits-limited opportunities for staff on low wages,when things go wrong-government are called in to bail out the supposed super companies,-more money to the shareholders,-fatcats enormous wages,but no return to pay back what they owe the state-[us].it is all about making profits.

Privatisation is not a cure-all or panacea for the economy of the country. It is part of the broader economic reform policy. (Ferguson, 2009)

The benefits of privatisation are quantified in terms of increased levels of production, diversification of production or products, the level or amounts of investments made, the level of Malawian participation, labour and employment issues, corporate citizenship and the proceeds realized from the transactions.


1)Development would be faster(due to competetion with the other private parties)2)Innovative solutions (due to again competetion with the other private parties)3)effective & time bound results4)cost cuttings5)improves quality in work6)in turn more services to public are possible7)increase the productivity8)significant Growth in the business9)controlled monitoring of public property gives public in turn good services

b) History Of Privatisation Of The British Rail

Historically, the pre-nationalisation railway companies were almost entirely self-sufficient, including, for example, the production of the steel used in the manufacturing of rolling stock and rails. As a consequence of the nationalisation of the railways in 1948 some of these activities had been hived-off to other nationalised industries and institutions, e.g. "Railway Air Services Limited" was one of the forerunners of British Airways; the railways' road transport services, which had carried freight, parcels and passengers' luggage to and from railheads, ultimately became part of the National Freight Corporation, but not until 1969.

The preferred organisational structure in the 1970s was for the BRB to form wholly owned subsidiaries which were run at an arm's-length relationship, e.g. the railway engineering works became British Rail Engineering Limited (BREL) in 1970; the ferry operations to Ireland, France, Belgium and the Netherlands were run by Sealink (U.K.) Ltd, part of the Sealink consortium, which also used ferries owned by the French national railway SNCF, the Belgian Maritime Transport Authority Regie voor maritiem transport/Regie des transports maritimes (RMT/RTM), and the Dutch Zeeland Steamship Company. However, the BRB was still directly responsible for a multitude of other functions, such as the British Transport Police, the British Rail Property Board (which was responsible not just for operational track and property, but also for thousands of miles of abandoned tracks and stations arising from the Beeching Axe and other closure programmes), a staff savings bank, convalescent ...
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