TOCS Paying Twice In Dividends What They Pay In Tax

RAIL UNION RMT released new research at their AGM in Brighton this morning showing that Britain's main private train operating companies are paying out twice as much in dividends than they are in tax.

Figures for the top five train operators showed that they paid just over 13% in tax on operating profits of nearly a billion pounds at a time when the basic rate of corporation tax is 23% and the standard personal tax rate is 20%.

In total, the top five train operators paid out £241 million in dividends to shareholders while paying out just around half of that - £123 million - in tax. The pitiful amount of tax paid pales into insignificance against the taxpayer subsidy of £2.48 billion soaked up by the train companies as they make a killing from Britain's privatised railways.

RMT is demanding a full investigation into the tax operations of Britain's train companies by the Public Accounts Committee with a focus on just how much money is being drained out of Britain's railways by overseas companies to subsidise their own train operations. Yesterday, RMT lifted the lid on the extent of overseas ownership of the rail network with more than 60% held by European state railways, using Britain's rip-off fares to subsidise their national services.

RMT General Secretary Bob Crow said:

"These new figures on the pitiful rates of tax paid by the train operators justify a full investigation probing into the rotten heart of Britain's privatised railways. We know that the government are terrified of lifting the lid on just how the British travelling public are being exploited because it would reinforce from top to bottom the case for public ownership.

"With the new Crossrail operation being lined up for the same gang who have plundered our railways for billions over the past 20 years it shows that this Government is prepared to tolerate the robbery on our railways in the name of pure political ideology. The fight for public ownership goes on."

> RMT National News

Thursday, 24th July
RMT has today backed the call from the London Assembly Transport Committee for Transport for London (TfL) to publish the review which led to the removal of blue light status from Emergency Response Unit (ERU) vehicles, and is calling for the reinstatement of this vital emergency capability.
Friday, 18th July
London to Essex train company c2c will come into public hands on Sunday but outsourced cleaners, will remain with a private contractor, RMT has said.
Thursday, 17th July
RMT has written to Metro Mayor Steve Rotheram calling for Merseyrail to be taken into public ownership, citing excessive profiteering by private operators and the overwhelming role of public investment in the service’s success.
Friday, 11th July
A new RMT survey of Tyne and Wear Metro cleaners has laid bare the devastating impact of outsourcing, with the vast majority of staff reporting poverty pay, lack of sick pay, and rising workloads under private contractor Churchill.
Monday, 7th July
On the 20th anniversary today of 7/7 London Bombings on July 7, 2005 Tube union RMT remembers those who were killed and injured in the attack.