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
North East bus passengers will soon be able to use Oyster-style tickets, travel operators have announced.
Britain’s biggest bus operators – including Newcastle-headquartered Go Ahead and Sunderland-based Arriva – have announced plans to launch London-style smart ticketing across England’s largest city regions.
The pledge by Stagecoach, First, Arriva, Go Ahead and National Express aims to deliver multi-operator smart ticketing to millions of bus customers across England next year.
Greater Manchester will be an early adopter of what is described as a “transformational initiative”, helping support the area’s wider growth plans.
The smart tickets will then be rolled out across Tyne and Wear, Merseyside, South Yorkshire and West Yorkshire along with the city regions of Nottingham, Leicester and Bristol.
The bus providers have spent several months finalising their plans and this work has included liaising with IT suppliers and the Department for Transport.
The announcement comes two weeks after North East councils took a step towards seizing control of the bus services, in a major shake-up of public transport – a move bitterly opposed by the bus companies.
Members of the North East Combined Authority voted unanimously for the Quality Contract Scheme (QCS) for the Tyne and Wear area.
If passed by an independent review board the proposals will signal a new era of London-style bus services across the region, in which travellers carry a pass similar to the capital’s Oyster card and councils decide on fares and when and how often services run.The bus companies said their own plans represent a multi-million pound investment in what is the biggest smart ticketing project in the UK’s history.
The technology will allow smaller bus operators to be included and provide a platform to extend the system to other modes, such as trams and trains.
In a joint statement, Stagecoach Group chief executive Martin Griffiths, First Group chief executive Tim O’Toole, Go Ahead chief executive David Brown, Arriva chief executive David Martin and National Express chief executive Dean Finch said:
“Millions of people in our biggest city regions will benefit from this transformational initiative in London-style smart ticketing. It will deliver an even bigger programme and wider benefit than the capital’s Oyster system.
“Bus operators share the aspirations of our city regions to become growing economic powerhouses and we know high quality public transport is an important part of making that happen.”
Bus operators also urged central and local Government to work with them to improve bus services across the country.”
Source – Newcastle Journal, 04 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
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