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  From...
  Realising the Potential of GB Rail: Final Independent Report of the Rail Value for Money Study - Main Report
  
  "21.4 Renationalisation
  A number of arguments have been put forward to support renationalisation.
  First, the costs of the rail industry have increased since privatisation. It is argued by some that this
  shows that privatisation has not achieved its overarching objective of cost efficiency through
  competition.
  Second, Government still provides large subsidies to the rail industry, with some of this money
  being paid to shareholders in dividends, which is therefore lost to the industry.
  Third, it is argued that renationalisation would create a simpler structure with a unified, vertically-
  integrated organisation with top-down goals and common objectives. This could reduce the
  duplication of functions across the industry and allow economies of scale/scope to be maximised.
  There could also be a reduction in transaction, legal and consultancy costs, as there would not be
  the same level of external procurement and matters such as discussions with the trade unions
  could be dealt with nationally rather than by many separate companies.
  Finally, owing to the nature of the rail industry, ongoing Government involvement is needed to
  regulate the private monopolies within the industry. This means it is unlikely that the industry will
  ever run as an effective privatised industry..."
  
  Obviously the report goes on to recommend less and less involvement of Government as the best way forward and this is what the present mob have seized upon.
  
  I think this report was co-authored by PWC. Who it was that struck the deal to payout £40 mi££ion to the bidders remains a mystery.

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