Network Rail was reclassified as a public sector company on Monday in what has been described as little more than a “statistical change”.

But the Rail, Maritime & Transport Union has jumped on the news by suggesting that the entire rail network should now be re-nationalised.

Bringing Network Rail into public ownership means that its debt will now show up in Government accounts. The change was brought about by the Office for National Statistics. It concluded that because of Government’s risk exposure in guaranteeing the railway operator’s debts, Network Rail is a Government controlled body and, as such, is in the public sector.

Network Rail had been classified as a private non-financial corporation since its creation in 2002.

“For passengers this statistical change will mean little to their journeys,” a Network Rail spokesman said. “It will mean greater accountability and transparency to Parliament, taxpayers and fare payers who rightly deserve to better understand the value of their investment in Britain’s railway.”

At a meeting on Friday all but one of Network Rail’s 41 members voted to change the company’s articles of association, said to be necessary because of the reclassification.

Main changes to the articles give the Transport Secretary additional powers over the appointment of the company’s chairman, its remuneration policy and selection of its members.

The RMT union said Network Rail’s change in status represents an important moment in the union’s campaign to re-nationalise the railways. “Recognition of Network Rail as a fully fledged public body should be seen as the spring board for taking the entire rail network back into the public fold,” said acting general secretary Mick Cash.

(Photo: Network Rail)

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