Competition works, does it?

Drill into rail’s latest passenger and financial figures and there is a silver lining for those who believe nationalising trains might deliver more reliability, lower subsidies and fares.

But there is a huge caveat: success will depend on ministers choosing to copy an operating model that has proved to be hugely successful on Britain’s East Coast intercity route for a quarter of a century. This is where three privately owned non-subsidised train companies, known as open access, compete aggressively with the state-run operator.

As we’ve been known to point out it’s not, particularly, ownership that matters. Yes, capitalism works but John Lewis and the Co Op are decidedly socialist - being cooperatives - organisations and you really don’t see us with signs outside them chanting “Capitalism Now!”

It is competition between different suppliers that matters. As here on the East Coast line, as also on the Spanish high speed routes. Yes, obviously, there’s only one set of rails but multiple companies - organisations, we’d not care if one or more was a co-op - can run over them.

It is competition that increases productivity and as Paul Krugman has been known to point out, productivity isn’t everything but in the long run it’s pretty much everything. So, competition in rail services - why not?

Tim Worstall