March 2004 - Strategic Rail Authority Research
More than 70% of City analysts believe rail regulator Tom Winsor has failed to bring clarity to investors in the industry, a survey commissioned by the Strategic Rail Authority, and conducted by ORB, has found.
Daily Telegraph
Business Section.
March 16th, 2004
Results of survey leave rail regulator steaming
By Alistair Osborne, Associate City Editor
More than 70% of City analysts believe rail regulator Tom Winsor has failed to bring clarity to investors in the industry, a survey commissioned by the Strategic Rail Authority has found.
The survey – conducted by The Opinion Research Business at a cost to the SRA of £10,500 – is based on responses from 33 City analysts, including those at UBS, Morgan Stanley, Dresdner Kleinwort Wasserstein, Merrill Lynch, Goldman Sachs and Cazenove.
The survey posed the question: “How strongly do you agree or disagree that the Office of Rail Regulator (ORR) provides ‘clarity and certainty’ to investors?”.
Of those analysts who responded, the survey found that 36% disagreed and a further 36% strongly disagreed. Only 3% strongly agreed, while 24% agreed. Mr Winsor prides himself on delivering clarity to investors.
In a speech in January, responding to the Government’s announcement of a review of the railways, he said: “The financial markets need to have certainty, stability and predictability, and therefore they need to know whether the jurisdiction of the independent economic regulatory regime is going to be changed.”
Yesterday, when told of the survey, Mr Winsor implied that he did not have a very high opinion of City analysts.
Pointing out that “independent economic regulation is a complex business”, Mr Winsor said: “Some analysts have many demands on their time. ORR makes every possible effort to explain things in as simple and comprehensive way as possible, as is borne out by the 24% who agree.”
In a further disparaging swipe, he said: “You can take a horse to water, but you can’t make it drink.”
On the question of who ran the railways, Mr Winsor only scored 12%, while the SRA got 30% and the Government 58%.
Of these responses, Mr Winsor said “they’re all wrong,” adding “the railway is running the railway”, subject to Government transport policy and regulation. He implied the STA should have better things to do than commission surveys.
Asked if the survey was not a waste of money, SRA spokesman Ceri Evans said: “Private investors are being asked to match public money pound for pound. We get a huge insight into one of our most important customers. To do anything less would be absurd.”
The SRA also came in for some criticism. Some 57% of respondents found its communications with institutional investors “poor” or “very poor”.
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For more information please contact Johnny Heald on 0207 611 5275 or email jheald@opinion.co.uk
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