UK-based international infrastructure group _{Balfour Beatty has published a paper called 鈥楽taying on Track鈥� laying out the group鈥檚 view that new funding models are essential to provide the UK鈥檚 rail industry with continuity of project flow, in order to support growth in innovation and skills}.

It said, 鈥淭he upgrade of our national rail network has the potential both to enable and drive economic expansion. However, delivering this is inextricable from ending the current stop-go pattern of funding.

鈥淭he investments required in capability, R&D (research and development) and critical strategic equipment cannot be justified by the industry without greater certainty.鈥�

It added that ignoring this would cause rail suppliers to continue to lose skilled engineers to sectors with more reliable project pipelines. The same forces would also restrict investment in new technology and productivity.

鈥淪uch loss would intensify the already serious constraints facing the rail industry and put in question efficient delivery of the government鈥檚 intended infrastructure enhancements, with all their benefits.鈥�

Leo Quinn, Balfour Beatty chief executive, said, 鈥淭he current combination of low-cost borrowing, a general appetite for infrastructure assets and growing demand for train capacity are a powerful catalyst for accelerating the development of our national rail network.

鈥淗owever, the scale of investment this requires of the sector鈥檚 suppliers makes it imperative to provide long-term certainty in the project pipeline. This means cracking the code on the underlying funding model.

鈥淭he prize is to develop a world-class rail industry in terms of innovation and capability, and provide jobs for many thousands of people.鈥�