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- Oct 16, 2011
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Aren't the government subsidising the railway industry anyway?
We also have foreign governments running train companies in the UK.
Indeed. I think it's fair to say that nationalisation isn't exactly a magic key to success - but by the same token pointing to previous failures wouldn't exactly be an indicator that it's something which can't work at all. Certainly, it's not like other public services in that the government would poor money into it without gain; if they charge modest but reasonable prices there's still plenty of money to be made from it, and the environmental benefits are tangible if you can get cars off the road in the longer term.
The rail sector is ultimately one of those sectors where government interference is always going to be necessary to some degree - it can't just be left to the markets as such, because once you run trains on a line you have a natural monopoly that can't be broken by private enterprise - the only way you can fail is if your profits dip drastically because your service is so bad people aren't taking trains anymore, and that would in itself be disastrous in that roads would become more cluttered, and the government would still end up stepping in eventually. In such sectors it feels sort of silly for the government to be paying massive subsidies without necessarily reaping any of the rewards. Especially when the service itself isn't actually all that good anyway.