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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/03/nr-aware-of-bonus-scheme-concerns.jpg"><img class="alignnone size-full" title="David Higgins said Network Rail had to be a company 'where we pay for performance'" src="http://londonglossy.com/wp-content/uploads/2011/03/min-nr-aware-of-bonus-scheme-concerns.jpg" alt="David Higgins said Network Rail had to be a company 'where we pay for performance'"/></a></p>
<p>Top management at Network Rail (NR) were &#8220;not tone deaf&#8221; to public concern at the company&#8217;s bonus scheme, the firm&#8217;s new chief executive told MPs.</p>
<p>But David Higgins added that NR, which paid its top bosses more than £2 million in bonuses in 2010, had to be a company &#8220;where we pay for performance&#8221;.</p>
<p>Transport Secretary Philip Hammond had questioned the appropriateness of the bonuses when they were announced last summer.</p>
<p>On Tuesday, former Olympic Delivery Authority (ODA) chief executive Mr Higgins, who took over from Iain Coucher, told the House of Commons Transport Committee that NR had already launched a review of its bonus scheme.</p>
<p>But he went on: &#8220;Performance management is absolutely essential to get an organisation to work (properly). There must be cause and effect, but there must be transparency. I am not tone deaf to public concern about bonuses and neither is our top management. But we do have to have a culture and environment where we pay for performance.&#8221;</p>
<p>Mr Higgins said that he had got a &#8220;very substantial bonus&#8221; when he was at the ODA and there had been &#8220;a lot of transparency&#8221; about it. He said it was important that it was &#8220;very, very clear&#8221; why bonuses were paid.</p>
<p>He also told MPs that some problems on the railways will never be fully solved and he accepted it was &#8220;more expensive to do things&#8221; on the railways in the UK than in Europe.</p>
<p>Mr Higgins said that £6 billion was needed over 15 years for the UK signalling system &#8220;to get us where the Europeans are today&#8221;.</p>
<p>Another problem was that NR had &#8220;a very limited time&#8221; to take over the track at weekends and holiday periods to do engineering work while in Europe these track &#8220;possessions&#8221; were for much longer periods.</p>
<p>Mr Higgins told MPs that one of the main London-to-Scotland routes &#8211; the West Coast Main Line &#8211; would be full in 10 years.</p>
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