But they could do nothing about it because of the arms length principle, putting things under government control shortens the chain of responsibility. This mea

But they could do nothing about it because of the arms length principle, putting things under government control shortens the chain of responsibility. This measure might be too little to really matter but the fact is that when you don't have an market(and for passenger rail you kind of don't) outsourcing operations to for-profit organisations provide nothing but a venue to funnel cash out of the system to private shareholders. When there is an functioning market that is not tied to an government backed/guaranteed service it does make sense to subcontract work to private enterprise, but unless the government contracts represent a relatively minor portion of the subcontractors revenue and the subcontractor don't have more then say 20% market share, there is no functioning market, so all you end up with is an mercantilist structure of public risk and private profits if you still insist on pushing the task to private enterprise.