Essex: Network Rail Boss In Bonus Row

2nd February 2012, 13:04

Network Rail's chief executive is under pressure from MPs to reject a potential £340,000 bonus in the week it faced criminal charges in Essex.

Former Labour rail minister Tom Harris has tabled a motion, signed by 27 other MPs from his party, calling on Sir David Higgins and the firm's directors to turn down any bonus payment.

A spokesman for Network Rail (NR), which is in charge of the country's rail infrastructure, said the firm's members would meet later this month to decide on the structure of a bonus scheme but no decisions had been made.

In the Commons motion, Mr Harris said NR had been "found by the Office of Rail Regulation (ORR) to be in breach of its licence and that, according to the ORR, 'major asset failures, congested routes and poor management of track condition' contributed to poor performance of the UK rail network in 2011".

Following the ORR's ruling in December last year, Transport Secretary Justine Greening said: "We have been repeatedly clear that bonuses should only be awarded for exceptional performance.

"Passengers would be extremely surprised if NR attempted to award bonuses next year in the light of this action by the ORR."

Mr Harris' motion claimed that NR's members, at their meeting on February 10, would "be asked to confirm annual bonuses for directors equivalent to 60% of their annual salary, resulting in a £340,000 bonus for its chief executive".

The motion "calls on the company's directors to reject these bonuses".

But a spokesman for NR said "no decision has been made on bonuses'' and the meeting would "decide the shape of a scheme".

He added: "That does not mean a bonus will be paid. It will decide on a mechanism."

On Tuesday, NR admitted health and safety breaches over the deaths of two teenagers killed at a level crossing.

Olivia Bazlinton, 14, and Charlotte Thompson, 13, were hit by a train in 2005 as they crossed the tracks at Elsenham station footpath crossing in Elsenham.

The firm also faces prosecution over the 2007 Grayrigg train crash in Cumbria in which one passenger died.

Manuel Cortes, leader of the TSSA rail union, said: "It beggars belief that Network Rail bosses are talking about six-figure bonuses in the week that they have pleaded guilty to criminal behaviour over the deaths of two schoolgirls in Essex six years ago.

"This is a taxpayer-funded company which has already been told by the ORR not to pay any bonuses for this year because of its poor performance."

Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "Network Rail have a terrible track record in managing Britain's rail infrastructure.

"It's simply unbelievable that bosses at the taxpayer-funded organisation have the gall to demand six-figure bonuses in the same week they've had to apologise over the deaths of two teenagers."