Easington Labour MP Grahame Morris and transport unions have reacted with fury to reports that the UK’s only Government-run rail line is to be taken over by a consortium largely owned by the French state.
Mr Morris said the decision to re-privatise the East Coast line was “right-wing Tory dogma being put ahead of the best interests of passengers”.
Edinburgh East Labour MP Sheila Gilmour and the RMT and TSSA unions were also highly critical of the expected decision.
The UK Government has been anxious to return the London to Scotland East Coast main line to the private sector ever since it was taken over from National Express by the Department for Transport in 2009.
But now it is likely that this week’s announcement of a new private franchise will see the line, from next year, being run by joint bidders Eurostar and French transport company Keolis which is 70% owned by state-run French rail company SNCF.
Opponents of the move to re-privatise the East Coast line have pointed out that the public-sector run company has made big returns to the Treasury during its tenure.
Mr Morris said:
“This public-run rail franchise has generated over a billion pounds for the Treasury. If this is what a publicly-run train operating franchise can deliver, at a time when every penny counts, we should be looking at ways to bring privately run railways back into public ownership not the other way round.
“This is right wing Tory dogma being put ahead of the best interests of the service, consideration for passengers and the public finances. The public-run East Coast main line franchise has consistently been the best performing franchise when it comes to passenger and staff satisfaction, fares and profitability. “
Ms Gilmore said:
“Passengers recognise the improvements to services that East Coast have made under public ownership over the last few years. They also appreciate that at present, all profits are retained for the benefit of British passengers and taxpayers.
“But despite calls from Labour for these arrangements to continue in the long term, today we hear that East Coast is set to be privatised just before the next general election.”
She went on:
“Ironically if the contract is awarded to Keolis – which is largely owned by the French government – ticket revenue may well be reinvested in improved services. Unfortunately these will be services between places like Paris and Lyon or Marseille and Monaco, rather than Edinburgh and London.
“A future Labour government would allow a public sector operator to bid for rail contracts, so that passengers and taxpayers always get value for money.”
A win for Eurostar/Keolis would mean disappointment for the other two bidders – FirstGroup and a joint venture between Virgin Trains and transport company Stagecoach.
Before National Express pulled out of the franchise, a previous private operator – GNER – also ceased running the East Coast line after its parent company Sea Containers got into financial difficulties.
Mick Cash, general secretary of the RMT transport union said re-privatising the line was “ludicrous” and a “national disgrace”.
“This is pure industrial vandalism and the strong rumour that the French-state operator is in pole position to mop up this vital, strategic north/south route says it all.
“This Government is happy to have state ownership of our railways as long as it isn’t by the British state, in the interests of the British people.”
Manuel Cortes, leader of the TSSA transport union, said:
“This has got nothing to do with improving services but everything to do with sheer political spite.
“Here we have the best-value franchise, which has returned £1 billion to the taxpayer over the past five years, being sold overseas because it is a public sector success story.
“Rather than allow that to continue, the Tories would rather see it in French hands. They don’t want the voters having the chance to keep it in the public sector by voting Labour in May.”
He went on:
“We are in the absurd position that the country that invented railways, and gave them to the world, is no longer considered by the Tories capable enough to run our own railway firms.
“They prefer French, German and Dutch state railways to run them instead. ‘Anyone but the Brits’ seems to be their vindictive attitude.”
Source – Newcastle Evening Chronicle, 25 Nov 2014
> If you have a state-run organization that is doing its job well and is making money for the country, what do you do ?
Leave it alone to get on with it ? Of course not, you sell it off to private enterprise. Or at least you do if you’re a British government…
A fresh round of protests against the re-privatisation of the East Coast mainline are being planned after it emerged it has paid £235m back to the Government this year.
The figure means that since the line returned to public hands after the collapse of the privately run National Express franchise in 2009, it has generated £1bn in revenue for public coffers.
Despite this, the re-privatisation process will see a new franchise bidder chosen in November. It will then take over its running from Directly Operated Railways in March next year.
Rail union RMT said the £235m figure, an increase of 12% on last year, makes a mockery of the Government’s plans to “bulldoze through a re-privatisation before the next election”.
It says the Government is ignoring the financial and operational success of DOR and the “catastrophic impact of two previous private sector failures on the line”.
The RMT pointed out that the short-listed bidders for the re-privatisation included other European state rail operators, notably Keolis which is tied in with the French state railways.
“This proves once again that the Government are happy to have state control of our main inter-city routes as long as it’s not the British state,” said an RMT spokesman.
He added: “We’re looking to organise a whole range of protests at stations on the East Coast mainline, including those in the North East.”
Meanwhile RMT Acting General Secretary Mick Cash commented: “It is a national disgrace that the Government are continuing with their plans to bulldoze through the re-privatisation of the East Coast Main Line despite the latest figures showing that it is handing massive sums back to the British people while delivering huge improvements in service and customer satisfaction.
“It is simply ludicrous to even contemplate re-privatisation when not only have there been two previous private sector failures on the East Coast route but when the public-sector rescue operation has been such a stunning success.
“While public ownership puts money back into the coffers that can be reinvested in our railways the private operators suck out colossal sums in subsidies and profits – that’s what privatisation means.
“The plans to hand this profitable and successful public rail operation back to the vultures are based purely on hard-right political ideology and RMT is committed to continuing the fight to block them up to polling day and beyond.”
Following privatisation of the railways in the 1990s, GNER was awarded the East Coast franchise in April 1996, to run what had been the InterCity East Coast division of British Rail.
However, in December 2006, the Department for Transport announced that it was to terminate GNER’s franchise to operate the East Coast main line after it ran into financial difficulties.
In August 2007 it was announced National Express Group had been awarded the franchise, operating under the name of National Express East Coast. However in July 2009 it said it would not be able to financially support its East Coast franchise beyond the end of 2009 when it returned to publics hands.
The three shortlisted bidders for the 393 mile route between London and Edinburgh are:
:: East Coast Trains Ltd (First Group plc)
:: Keolis/Eurostar East Coast Limited (Keolis (UK) Limited and Eurostar International Limited)
:: Inter City Railways Limited (Stagecoach Transport Holdings Limited and Virgin Holdings Limited)
Source – Newcastle Evening Chronicle, 04 Aug 2014