How have the rail in Britain been privatized?

In the 1993 the Railways Act was introduced. The operations of the British Railways Board (BRB) were broken up and sold off. In this essay I shall outline the way in which BRB was divided into private companies, and discuss the role of the state in the rail industry, by outlining the role of the most important bodies that set the rules and regulations of the British rail companies.

The Railway Act split the BRB into few sectors. The infrastructure – all track, signalling and stations – went to the Railtrack. All of British Rail's passenger coaches, locomotives, and multiple units was allocated in hands of three Rolling Stock Leasing Companies (ROSCOs) – Angel Trains, Porterbrook Leasing, and Eversholt Trains (later HSBC Rail). Passenger Train Operators were converted into Train Operating Companies that owned virtually nothing, as they had to rent trains from ROSCOs and hiring the space on train from the Railtrack. They were supposed to compete for the customers, hence allocate the resources more efficiently. However, introducing free market competition by scattering the BRB into different sectors, and dividing one into 25 private TOC turned out to be a failure, due to the peculiar features of the railway industry. I shall evaluate this claim in my next essay. Now I will outline the role of the regulatory bodies and Franchising bodies.

The Rail Regulator was established in order to prevent companies from monopolistic practices, regulate the safety rules and set the framework for operating the tracks. The Director of Passenger Rail Franchising took responsibility for organizing franchising process for the 25 TOSs.

Explain what is meant by sustainable transport policy:

These are all the actions of the government to promote sustainable transport. By sustainable transport I mean, modes of transport that are more fuel efficient.

Problems with placing value on externalities
a. Some externalities may hard to be estimated in monetary values (i.e. pollution)
b. It is hard to estimate value of human life (i.e. When building a new hospital or highway)
c. Some times it is possible to estimate the value of an externality, but it may be expensive and lead to even bigger misallocation of resources

do not know what is cba

Explain why the level of profit differs between perfect competition and monopoly: ESSAY PLAN

1. Introduction:
a. monopoly – definition
b. Perfect competition – definition
c. Profit definition
2. The content
a. Monopoly – bigger profit – the economies of scale
b. Monopoly bigger profit - the amount of good on the market equals the amount supplied by the economist, so abnormal profit
c. In perfect competition there is no abnormal profit in the long term, because if there was any other companies would jump into the market
3. Summary
a. There is more profit when you are a monopolist

1. Definition of transport:
Transport is movement of either people or goods. It can be human powered, animal powered or mechanic powered. It can be performed by various modes; air rail, road, pipelines, cable, pipeline and space.

2. Transport modes and modal characteristics:
(Or means of transport or transport mode or transport modality or form of transport.) It is a term used to describe different kinds of technological solutions – transport facilities used to relocate people and cargo.

3. Transport as derived demand.
Derived demand is demand for a good or service which occurs as a result of demand for other good or service. Demand for transport most often derived from demand for labour (when we go to work) demand for almost all goods that need to be transported, or their process of production involves transporting.

4. Factors affecting the supply of transport services.
The price of oil, the infrastructure and the amount of government spending putted into it, the government policy (taxation i.e. congestion charges), the level of technologic development.

The accuracy of the advertisement

As a Pole I will comment on the accuracy of the advert, which tries to attract foreign investors to my country, and is was commented by tutor2you (http://www.tutor2u.net/blog/index.php/economics/comments/investing-in-poland/)

The first thesis of the short advert that I will discuss is the number of the universities. Yes we have almost 500 universities (487). In Poland there are about 19 414 000 students, and this number is gradually growing.

It is also true, that we are the fastest growing economies in the new European countries (second in the OECD countries), since 2003 we have bigger growth than 5% annually, with relatively small inflation (between 2 and 6 per cent).

The ‘numerous incentives and grants’ come predominately from UE, which in years 2007 – 2013 will allocate 80 billion Euro in our economy. This money is available also for foreigners who want to invest in our country.

The most controversial argument in the advertisements is the one that Poland is the one of the ‘most attractive location for the FDI’. It is true that it is ranked by many as so but, this is has to be evaluated by me in the next essay, because this issue is bit more complicated than those mentioned above.