John Armitt, chief executive of Network Rail, the ‘not for dividend’ successor to Railtrack as owner of the UK rail infrastructure, does not expect an ongoing review of the industry’s performance payment system to produce any significant changes.

‘The first half of 2004/5 marked the start of the new five-year regulatory period, which has put the company on a sound financial footing.

Our new investment appraisal procedures are ensuring greater efficiency and maximising the effectiveness of every pound in the ground.’

said Armitt.

Discussion point
What questions would you ask in appraising investment in a railway track or a railway station?