> If it aint broke… break it.
The East Coast Main Line franchise made a profit of £13 million last year – with the cash returned to the Treasury.
And the financial success of the line is in stark contrast to other (privatised) rail franchises, which required millions in subsidies to keep going.
Labour said the figures exposed the foolishness of privatising the line, which is currently run by a state-owned business but is due to be managed by Virgin Trains from March.
They were published in the annual financial report of the Office of Rail Regulation, the official regulator for Britain’s railways.
The East Coast Main Line was one of only two rail franchises to make a profit for taxpayers. The other was South West Trains.
Virgin Trains, which currently runs the West Coast Main Line from London to Manchester and on to Scotland, received £221 million in subsidies.
And the most expensive franchise was the Northern Rail line, which operates in the North East, North West and Yorkshire, and received £495 million.
A separate study by consumer group Which also found the East Coast Main Line had a good record for train delays, coming sixth out of 21 franchises for the lowest number of delays.
Labour’s Shadow Rail Minister Lilian Greenwood MP said:
“These reports prove that the forthcoming East Coast sell-off is set to be a terrible blunder that puts privatisation ahead of passengers’ and taxpayers’ best interests.”
“East Coast was one of only two train operating companies that made a net contribution to the Treasury once infrastructure costs were taken in to account.”
Labour plans to allow a state-owned operator to bid for future franchises, although this would still potentially allow private operators to run franchises if they win the bidding process.
The policy not supported by some Labour MPs who argue that franchises should simply be transferred to the public sector once they expire.
Rail Minister Claire Perry said:
“We are investing record amounts in our railways as part of our long-term economic plan and passenger fares have a crucial role to play in funding these improvements, which will bring more services, more seats and modern trains.
“As we drive forward this huge investment programme, it is absolutely important that disruption to passengers is kept to a minimum. It is also important that we recognise passengers’ concerns about the cost of rail fares. This is why we have frozen them for the second year in a row.”
The Office of Rail Regulation said rail industry income from passengers in 2013/14 was £8.16 billion – a 10.8% rise compared with the figure for 2010/11 and 6.2% higher than in 2012/13.
Government funding for the railways in 2013/14 was just under £3.8 billion – a 16.4% dip on the total for 2010/11 and 8.1% down on 2012/13.
Total Government funding in 2013/14 varied from £1.88 per passenger journey in England to £7.77 per journey in Scotland and £9.18 per journey in Wales.
Government funding in 2013/14 represented 28.5% of the rail industry’s total income.
The number of passenger journeys increased by 16.6% (or by 260 million journeys) between 2010/11 and 2013/14, with the amount of freight carried rising 18.1%.
ORR chief executive Richard Price said:
“There has been substantial growth in the use of the railways in the past four years. Passengers are increasingly the main funder of the railways, and must be central to developing plans for future services and investment.
“Our report also highlights that the rail industry has been successful in keeping costs stable despite carrying significantly more passengers.”
Source – Newcastle Journal, 16 Feb 2015
The vast majority of Labour supporters back a set of left-wing policies proposed by three North MPs, a poll shows.
Ian Lavery, Ian Mearns and Grahame Morris, MPs for Wansbeck, Gateshead and Easington, signed a letter calling for a number of changes to their party’s policies, and a poll by Labour List shows 83% of supporters back them.
The statement called for the re-nationalisation of the railways, ahead of the East Coast Main Line returning to private hands, and an end to austerity measures.
It comes as Labour figures make the finishing touches to the election manifesto, eyeing both a surge by the Greens and the threat of Ukip.
The poll shows that Labour’s grassroots are for the party lurching to the left. Ed Miliband is unlikely to sanction such a move, however, in the wake of recent criticism from business leaders, including that of Boots boss Stefano Pessina, who said the party winning power would be a “catastrophe” for the country.
> So he should do it just to piss Pessina off ! Him and his ilk aren’t likely to be Labour supporters anyway, so where’s the problem ? Are you really for the people Ed, or for big business interests ?
No, don’t bother answering that. I think we already know the answer.
Ian Lavery, MP for Wansbeck, said the MPs’ proposal is “hardly revolutionary” and called for the party to be “a little bit bolder”.
“Currently the party policy makers are drawing up the long-awaited manifestos.
“It’s a critical period when politicians should ensure the voice of their constituents should be heard. Rail Nationalisation, Trade Union Rights and collective bargaining in the workplace and a change in focus on austerity are issues the general public are hankering for, and why not.
“These simple policies are hardly revolutionary and would impact greatly on those who have faced the brunt of the relentless attacks of the coalition Government.
“Report after report show it’s the less well off who are shouldering biggest burden in today’s society we must endeavour to change this unacceptable situation.
“Politics is about decisions it’s about choice, despite the excellent policies on offer from the Labour Party we need to move a little further and influence the decision makers these issues are exceptionally appealing to our natural voters.
“Being that little bit bolder under the excellent leadership of Ed Miliband would undoubtedly pay dividends for the party, and the constituents we represent.”
> Ed Milliband an excellent leader ? Sections of the media, of course, try to portray him as something of a weirdo. Speaking as someone who has spent much of his life in the company of weirdos and who, truth to tell, is probably a weirdo too, my complaint is that Ed is not weird enough !
He just comes over as another identikit career politician, to be honest. He could be leading the Conservatives and not look out of place.
Most damning of all, he comes across as Blair Junior, which is a bit like being Satan Junior to many of those people who used to vote Labour before it became New.
Ian Mearns, MP for Gateshead, added:
“Most people, including the former head of the Bank of England, know that it wasn’t the last Labour Government that crashed the economy, it was an international financial and banking crisis – yet it seems that the people who crashed the economy, the bankers, are the individuals who are personally profiting from the situation while urging cuts, pain and austerity for the vast majority of the population.
“Austerity and the pain that goes with it, is not necessary – it is a set of political and economic policy choices. There are alternatives and we should explore those alternatives for the benefit of the many rather than the few.”
All of the main parties have yet to publish their manifestos.
Source – Newcastle Journal, 04 Feb 2015
The Government’s treatment of North rail passengers is “nothing short of scandalous”, it is claimed today, amid fears that outdated Pacer trains won’t be replaced.
Easington’s Grahame Morris is calling for a firm commitment on replacing the “outdated, uncomfortable and cramped” trains, which go no faster than 60mph on Northern and Trans-Pennine Express routes.
The line is set to be re-franchised in 2015 and George Osborne said the new deal would include “a substantial package of upgrades including new services and modern trains”.
But Mr Morris said doubt hangs over the claims and the Chancellor could be backtracking.
He said Government documents show bidders are simply being ‘encouraged’ to replace the Pacers and, when quizzed in Parliament this week, Transport Secretary Patrick McLoughlin offered the North no cast iron guarantees. Now, the County Durham MP is calling for swift action.
“Like thousands of my constituents I travel on these outdated, uncomfortable and cramped trains every week,” Mr Morris said.
“On top of all the other things hitting North East commuters we now have the prospect of continuing to use these totally inappropriate trains for the foreseeable future. I am writing to the government to point out that North East passengers are suffering enough without this new threat. I shall be seeking guarantees from the government about this.”
It had long been assumed Pacers, originally a stop-gap solution, as they are outmoded and expensive to repair.
The MP added:
“The North has a tiny fraction of money spent on it on infrastructure, compared to London and the South and the amount spent in the North-East is even less. All we want is fairness, North-East travellers deserve their fair share.”
He also said rising fares and the Coalition’s move to re-privatise the East Coast Main Line are unacceptable and the region is not getting the deal it deserves.
He said re-franchising services would spell job losses and companies like Stagecoach and Virgin – who as InterCity Railways won the East Coast Main Line franchise would be “laughing all the way to the bank”.
East Coast, under public ownership, had moved into profit and had high approval ratings from customers.
“The way rail passengers in the North-East are treated is nothing short of scandalous,” said Mr Morris.
“In the last 20 years we have seen a fragmented, privatised rail network fail passengers, with high fares and poor service, all in the name of the free market. It is clear we need, as happens in most other countries, a publicly owned and managed rail service aimed at providing a safe, affordable and efficient service for passengers.
“The decision by this government to force the East Coast mainline back into private hands, despite the public company running it consistently achieving top marks on all measures, including passenger satisfaction and value for the taxpayer, only goes to show it’s all about political ideology, not what’s right for the public and taxpayer. Of course the private train companies are laughing all the way to the bank.”
Source – Sunday Sun, 14 Dec 2014
High speed rail will slow down services from the North East to Scotland and reduce London journeys by just 11 minutes, the region is today warned.
A series of route documents have shown how the North will be increasingly isolated if the £42bn railway project is completed.
After a trickle of concerns at the plans for a new railway emerged over the last year, the final picture increasingly shows a high speed network in which Newcastle actually loses services.
Consultation documents put out by HS2 and Network Rail show:
- From 2033, Newcastle’s direct trains to and from Aberdeen, Edinburgh and Glasgow are replaced by a stopping service calling at small towns throughout the line, hugely adding to journey times;
- All London to Scotland services will go up the West Coast;
- High speed rail will replace, not add, to all existing East Coast London to Newcastle routes in order to free up capacity south of York;
- Under High speed plans, Durham would lose out on direct links, while Darlington moves from two trains an hour to London to one train;
- Total journey saving times to London when Durham’s Hitachi trains are built are just 11 minutes.
Under Government plans, the high speed railway will go from London to Birmingham, heading in a Y-shape to Leeds and Manchester by 2033. The fast trains then switch down to regular speeds and travel either to Newcastle or up the west coast to Scotland, with Newcastle now becoming simply the end of a branch line.
Gateshead MP Ian Mearns, who sits on the House of Commons group overseeing the London to Birmingham high speed work, said he had warned his own party’s front bench team that something will have to change if the North East is not to lose out.
He told The Journal: “We have some of the worst rail connections already. As I have said to our front bench, the North East first of all needs to be recompensed for the disruption we will face as work goes on from York to London.
“But also, this new line will build economic powerhouses in West Yorkshire and Greater Manchester, while whatever happens in Scotland it is going to be given more economic powers.
“The North East risks being trapped in between these economic honeytraps, with slower connections to Scotland and losing some services to London. How will we sell ourselves to investors after High Speed 2?”
Other Labour MPs hitting out at the high speed plans include Durham’s Kevan Jones and Newcastle’s Nick Brown. They are at odds with Labour councils such as Newcastle and the Association of North East Councils, which have campaigned for new route despite the concerns.
Many of the damaging changes to North East services come as a result of a lack of investment in the East Coast Main Line north of York.
The four-lane line railway network changes to a two-lane line between Northallerton up to Newcastle. And with that system already leading to congestion on a one-in one-out basis, the new high speed route would only be able to replace, rather than add to, existing services.
In its consultation document, Network Rail admits that High Speed duplicates services up the East Coast, and as such, it wants to “reduce the quantum of long distance services,” axing long distance trains and replace them with slower, stopping services.
South of York there is increased extra capacity as all trains from Newcastle and Scotland are sent past Birmingham to Euston, with six trains an hour from the North moved off the existing system.
The system would mean there is an end to services from London to Edinburgh via Newcastle, documents show.
Instead a new stopping services would start at Newcastle and call at Cramlington, Morpeth, Alnmouth, Berwick, Dunbar, Drem, Prestonpans and Edinburgh Waverley.
And the same capacity constraints that force all these changes mean that from 2019, transport officials have decided the only way to increase services on the Transpennine service is to reduce one train an hour on the Birmingham via Leeds Cross Country routes.
Source – Newcastle Journal 06 May 2014
Rail unions have launched a legal battle with the Coalition Government over the sale of the East Coast Main Line.
They claim the planned “re-privatisation” of the service before the next general election in 2015 is being rushed through and that ministers have “cut corners”.
The rail unions Aslef and the TSSA said their members’ jobs and conditions, as well as the interests of passengers and taxpayers, were being threatened by a lack of consultation.
They are seeking a judicial review over the matter and are also challenging extensions to the Thameslink and Great Northern franchises.
Aslef general secretary Mick Whelan said: “It is imperative that we raise the genuine concerns of all stakeholders but, especially, the employees before this is rushed through. We cannot, in good conscience, allow the mistakes of the past to happen again.”
The East Coast Main Line franchise, which runs from Edinburgh, through the North East to London, has been in Government hands since November 2009 when the then franchise holders National Express gave it up, saying it could not afford to run it any more.
Before that, from 1996 to December 2007, it had been run by Great North Eastern Railway before it had the franchise taken away due to poor financial management.
It has been run for the Government since 2009 by Directly Operated Railways, which last year returned more than £200m to taxpayers as a result of its stewardship of the line.
In January the Government published a shortlist of three bids to run it as part of plans for the rail route’s re-privatisation. The bidders were FirstGroup, a joint bid from Eurostar and French firm Keolis, and another from Virgin and Stagecoach.
RMT acting general secretary Mick Cash said: “After the scandal of this Government robbing the British taxpayer of a billion pounds in the scramble to privatise the Royal Mail it is shocking that they are engaging in the same tactics to try and hand the East Coast Main Line back to their friends in big business.
“The British public have a right to openness and transparency when it comes to the ideologically-driven attempt to sell off Britain’s most successful rail-route to the speculators and chancers after two previous private sector failures on the same line.”
TSSA leader Manuel Cortes said: “The coalition knows only too well that rail franchising is not fit for purpose. Rail workers are at a loss to understand why the Government insists on going forward with a broken system which threatens the interests of passengers and taxpayers.
“We can only conclude that the ideology which saw Royal Mail flogged off on the cheap continues to thrive.”
A Department for Transport spokeswoman said: “We will vigorously defend this claim and remain committed to the franchising programme.
“As these legal proceedings are ongoing it would not be appropriate to comment further at this stage.”
Source – Newcastle Journal 07 April 2014
Protests have been taking place across the country against the Government’s controversial plan to sell off the East Coast Main Line.
Campaigners gathered at stations up and down the line – including York, Durham and Newcastle – to greet travellers and press home their argument.
The protest by Action for Rail was deliberately timed to co-incide with the beginning of the Liberal-Democrats’ spring conference in York this weekend.
The campaign, backed by the TUC and railway unions, is fighting the Government’s proposals to re-privatise the route – the only remaining publicly-owned railway in the UK.
It has been in public ownership since 2009, after two previous private train operators were forced to bail out of the franchise for financial reasons.
But last October ministers announced plans to re-privatise the line and more than 60 MPs have since signed an early day motion calling on the government to keep the line public.
The campaigners argue that Directly Operated Railways – the public operator of the line – has achieved record levels of customer satisfaction and provided the highest returns to the taxpayer while receiving the lowest public subsidy among all the train companies.
TUC general secretary Frances O’Grady said: “Privatising the East Coast defies all logic. Since it was re-nationalised the line has gone from strength to strength.
“This decision shows the government is clinging on to its outdated faith in privatisation at all costs and is determined to remain blind to the fact that public ownership has been a success for taxpayers and passengers alike.”
Source – Northern Echo, 07 March 2014