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3.6 Government intervention

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Question 41

Extract B

Apex Rail chief executive receives £1.4 million bonus amid service cuts and safety disputes

The Chief Executive of Apex Rail, a private train operating company facing intense criticism for delays, cancellations, and deteriorating station maintenance, received £1.4 million in total compensation last year. This has sparked widespread public anger, leading to renewed demands for the complete nationalisation of passenger rail services and the implementation of a maximum pay ratio for executives in state-regulated monopolies. By contrast, the starting salary for a qualified rail safety steward at Apex Rail is £28,500, while specialized signal technicians earn up to £41,000.

Over the past eighteen months, rail services have suffered severe disruption due to ongoing industrial action. Representative unions are fiercely resisting Apex Rail's plans to transition to driver-only operations (DOO) on all routes and cut platform dispatch staff, arguing that removing onboard guards and reducing station personnel seriously compromises both passenger safety and the physical security of sole-working employees on remote platforms.

Question

Assess whether the complete nationalisation of passenger rail services would protect rail industry employees.

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3.6 Government intervention Questions

  1. A Level
  2. /Economics
  3. /3.6 Government intervention