NETWORK Rail staff are demanding to know why their pay is rising below-inflation levels, after Network Rail’s official return to public ownership yesterday.

Holding a celebratory assembly outside the company’s headquarters, members of all three rail unions — TSSA, Aslef and RMT — asked where money raised through passenger fares and taxpayer subsidies was ultimately going.

“All the investment seems to end up in the pockets of fat cats,” said RMT South East council executive member Mike Sargent.

According to Mr Sargent private investors see Network Rail as a “cash-cow,” diverting profits into shareholder dividends while ramping up ticket prices and implementing staffing cuts.

“All they care about is ramming people onto those trains and not doing anything to improve the conditions,” he said.

Adding insult to injury, the government continued to enable the firm’s opaque balance sheet, with Transport Secretary Patrick Mcloughlin placing Network Rail outside the remits of the Freedom of Information Act.

Unlike any other public-sector body, the £7.6 billion taxpayer-funded Network Rail will not be obliged to answer for its management decisions.

Writing to Mr Mcloughlin, Labour MP Grahame Morris said: “It is very important that passengers and the public at large are able to ‘follow the public pound’ and it is frankly not credible to exclude such an important public body from proper scrutiny.”

Worryingly, Mr Mcloughlin is the person also responsible for the appointment of Network Rail’s new chairman and governing body.

Now the company has been renationalised the Transport Secretary will also approve the executive salaries and bonuses.

Previous top management was often criticised for exceedingly high rewards, with new Network Rail boss Mark Carne currently earning £675,000 a year.

Aslef general secretary Mick Whelan told the Star during yesterday’s assembly that now Network Rail is “on the public books,” the government needs to stop “telling lies” and “tell the truth.”

This Friday will mark the beginning of a long weekend overtime ban by rail managers which will run for three weeks.

Over 2,000 TSSA members are expected to take part in the event which could result in disruptions across the network.

The union's general secretary Manuel Cortes promised to escalate action until Network Rail agrees to negotiate a better pay offer.