Network Rail hit with £14 million fine

Network Rail has been fined a record £14 million after new year engineering works overran.

The Office of Rail Regulation (ORR) has levied the fine against the body responsible for the rail network and ordered it to fix "systemic weaknesses" in the way it manages engineering projects and communicates with train operators.

Thousands of commuters were affected in January after engineering works at Rugby and London Liverpool Street overran, forcing line closures between Northampton and Birmingham International and disruption to trains arriving in London from East Anglia.

At the time Network Rail blamed a shortage of specialist engineering staff for the delay, prompting speculation many staff had simply failed to turn up for work over the festive period.

Bill Emery, ORR chief executive, said: "It is right that we should also impose a fine to mark the seriousness of this breach of Network Rail's licence and to send a clear message to the company's board and senior management that it needs to address the weaknesses we have identified as a matter of urgency."

However, the Liberal Democrats have criticised the fine, arguing it will be bad news for passengers and Network Rail bosses should instead have been penalised through their bonuses.

Lib Dem transport spokesman Norman Baker said: "This sounds like a huge fine, but it is a pointless one. All it means is Network Rail will have £14 million less to invest in railways, and the chancellor £14 million more in his coffers. This is actually bad news for passengers."

In a bid to prevent further disruption, Network Rail has also been ordered to publish a more detailed plan on how it plans to complete upgrade work on the West Coast Mainline, amid scepticism the December 2008 deadline will be achieved.

The Lib Dems are calling for a change in the way engineering works are carried out, arguing work should be targeted at single lines at a time, allowing trains to continue running across the network.