The Government is putting increasing amounts of cash into the railways while private investment is drying up, a rail union has warned.
Government investment in rail increased from £3.79billion in 2004/5 to £4.59billion in 2005/6.
But private sector investment dropped significantly from £5.5billion in 2004/5 to £3.7billion in 2005/06.
The disparity was spotted by the Transport Salaried Staffs’ Association.
General Secretary Gerry Doherty said: “It should be a matter of great concern to the Government that the private sector now appears unwilling to deliver the stable investment flows required for building the 21st century rail network that our economy needs and that welcome increases in government investment are being undermined by the fall in investment from the private sector so that effectively less money is going into the industry.
“This comes on the back of reports that companies such as SeaContainers are trying to renegotiate their GNER franchise so that they are required to pay the Government less money, actions which will inevitably act as a further drain on public finances and may well lead to cuts in customer service.
“Frankly we never thought that the private sector with its quick profit ethos would be inclined to deliver the sustained investment that a vital national asset such as the railways needs for our economy to prosper.”
The TSSA said the figures were published in the latest Department for Transport National Statistics on public transport.
Information from: tssa