BUSINESS: Amtrak Must be Overhauled or Junked, Secretary Mineta Says

story.news.yahoo.com
The Bush administration's message to Amtrak is simple: Change or die.

If Amtrak isn't dramatically overhauled, the Bush administration is prepared to essentially junk it and save only the commuter-rail segments, Transportation Secretary Norman Mineta said Wednesday. That's preferable, he said, to spending about $1 billion a year in subsidies to keep the cross-country passenger-rail system alive.

In its 2006 budget, the Bush administration proposes eliminating Amtrak's annual subsidy, which is $1.2 billion this year. The idea is to force Congress and Amtrak to institute sweeping change. Bush would limit Amtrak to owning and operating trains. Others - including state or local governments - would own the rails, stations and physical property, much as private businesses run airlines but the government maintains airports.

Every other mode of transportation has changed dramatically since the 1970s, when trucking and aviation were deregulated, but not Amtrak, Mineta said.



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