Network rail fine £14m ..... where does it go???

Question

Does anyone understand where this fine goes? Who gets it? Why isn't it reimbursed back to the customers who suffered the inconvenience over the Christmas break. And is this fine fair????

Answer 1

The fine imposed by the rail regulator for the failure to complete three sets of engineering works nearly double the previous highest, £7.6 million which was paid by Railtrack in August 1999. The money will go to the Treasury.  "Simply fining Network Rail potentially hits passengers twice," said Anthony Smith, the organisation's chief executive.   "Passengers suffered the original disruption and then a large amount of investment cash will be lost to the rail industry which could mean poor quality services in the future." Norman Baker, the Liberal Democrats' transport spokesman was equally critical. "This sounds like a huge fine, but it is a pointless one," he said. "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.  "The only sensible leverage over Network Rail in its present structure is to penalise directors through their bonuses."