Vertically-integrated not-for-profit railway in Scotland?

Article in The Herald reporting that the Scottish Labour Party (which is running second to the SNP in voting intention polls for the May 2007 Scottish Parliament elections) has committed to consider the possibility of awarding the post-2011 Scotrail franchise on a not-profit-basis basis. Unnamed sources are reported to have suggested that the non-profit operator could be a new subsidiary of Network Rail.

Condition 13 of Network Rail's licence (75 pages, PDF), prohibits Network Rail from being "directly or indirectly interested in the ownership or operation of any railway vehicle in Great Britain" (other than engineering trains and the Royal Train) except with the consent of ORR (or perhaps of the Secretary of State if it is considered to be a "public sector operator").

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Filed under Public transport.

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