MPs criticise rail bosses for bonuses

Monday, 21 July 2008 12:00 AM

MPs have criticised Network Rail bosses for receiving "extraordinary" bonuses despite engineering overruns which caused chaos earlier this year.

National Rail's three top executives are to get annual bonuses in excess of £200,000 each, despite the delays in the New Year.

A report from the Commons transport select committee found passengers were "inconvenienced and humiliated" after engineering work overruns at Rugby, Liverpool Street and Glasgow Shields Junction.

The rail regulator fined the company a record £14 million for the problems.

MPs blamed management failings for the delays, which affected thousands of commuters returning to work after the Christmas break and said the large bonuses were "extraordinary" and add "insult to injury for the long-suffering passengers".

Network Rail's chief executive, Iain Coucher, said: "We are disappointed by the comments in the transport select committee report which do no reflect the pivotal role Network Rail has played in turning around the railway from the mess inherited from Railtrack.

"Since New Year we have invested over £2 billion in thousands of projects across the country applying the lessons from the unacceptable over-runs at New Year."

Mr Coucher will be receiving a £305,000 bonus this year, according to the report.

The report called for action to "prevent generous bonuses being handed out for good performance in some areas against a background of catastrophic failure in others".

MPs were also concerned that the cost of running the railways is shifting more towards the passenger and away from the taxpayer.

The shift should happen over a longer period than has been planned, the report said.

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• transport