Easington MP Grahame Morris has called on Parliament to launch an inquiry into foreign state-owned companies owning UK rail firms.
Mr Morris said British commuters, who suffer the highest rail prices in Europe, are subsidising foreign passengers.
MPs from Parliament’s rail group have called for an urgent inquiry.
It follows a decision to award the Scotrail franchise to Dutch state-owned firm Abellio, and also research showed 20 of the UK’s 27 private rail services are owned by foreign state-owned or backed railways.
Mr Morris said British commuters have experienced substandard services for decades adding:
“Often the very same operators that are using British commuters as cash cows are foreign state-owned companies that then hold down fares and improve services back in their own countries.
“That British commuters are expected to both suffer the failure of rail privatisation as well as subsidise commuters in Holland, Germany and France adds insult to injury.”
Source – Hartlepool Mail, 18 Oct 2014
The shortlist of train firms bidding to run the region’s rail services have been announced by the Government – with unions immediately descriving the operators as the “same old greedy companies”.
Three companies have been shortlisted to run the Northern franchise, while three companies are being considered for the TransPennine Express franchise.
All the operators companies have successfully passed the pre-qualification stage, and will now be asked to develop their plans for the franchises before they receive the Government’s Invitation to Tender in December.
Officials say that bidders will be expected to show how they will make the most of the government’s £1billion investment programme for the rail network in the north of England, which aims to provide faster and more reliable journeys, more capacity, better trains and improved connections for passengers across the region.
The shortlisted bidders to run the two franchises are:
• Abellio Northern Ltd
• Arriva Rail North Limited
• Govia Northern Limited
• First Trans Pennine Express Limited
• Keolis Go-Ahead Limited
Rail Minister Claire Perry said: “The north is undergoing a real rail renaissance, and we will be asking these companies to come up with innovative and ambitious proposals that will ensure a truly world-class rail network for the region.
“Building a railway that is fit for the 21st century is a vital part of our long term economic plan, connecting businesses and communities, generating jobs and boosting growth, and we need strong private sector partners to help us achieve this ambition.”
The new operator will also be expected to work closely with Rail North, which represents the region’s local authorities, to ensure local rail users will have more influence in how their train services are run.
Sir Richard Leese, for Rail North, said: “The companies on the shortlists demonstrate the interest there is in meeting Rail North’s desire to see the railway acting as an economic driver in the north of England.
“We look forward to working with the bidders to deliver strong franchises for passengers, which reflect the aims and objectives of our Long Term Rail Strategy and the predicted growth in patronage.”
The franchise is expected to run for a period of around 7 to 9 years, with the provision for an extension of one year at the discretion of the DfT.
An announcement about the successful bidder is expected in autumn 2015, with the contract expected to start in February 2016.
One of the shortlisted companies, Stagecoach, said the TPE rail franchise was a key part of the North of England’s infrastructure, supporting economic growth and connecting communities – and the company was delighted to have been shortlisted by the Department for Transport.
A spokesmand added: “Stagecoach has played a leading role in transforming rail travel in Britain over the past two decades, bringing new ideas and putting customers at the heart of the railway.
“We look forward to engaging with local people and other stakeholders to develop a package of ambitious and robust proposals that will improve services and deliver better value for money to passengers and taxpayers.”
Mick Cash, RMT Acting General Secretary, criticised the Government for releasing ths hortliost just horus after a consultation process into the future of the services closed.
Mr Cash added that the shortlist contained “the same old greedy companies looking to hitch yet another ride on the rail privatisation gravy train purely in the interests of private profit”.
He said: “It makes a mockery of the consultation that this list of the greedy and the incompetent has been drawn up by the Government before the consultation responses have even been opened and before these companies even know what it is that they are bidding for.
“RMT said from the off that the consultation was wholly bogus, this morning’s outrageous manoeuvring has proved that conclusively and RMT will use every tool at our disposal to expose this racket for what it is.”
Both franchises are due to be awarded by October 2015 and as they develop their bids each of the bidders will need to set out how they will capitalise on the biggest programme of rail modernisation ever.
The Government says that than £1billion will be spent on the rail network in the north over the next five years.
The potential operators will need to demonstrate how they will use these projects to increase capacity in order to tackle crowding and meet future passenger demand; provide faster and more frequent services; and upgrade rolling stock, including proposals to replace Pacer trains on the Northern franchise. Bidders will also need to improve customer service and passenger satisfaction.
The Northern and TransPennine Express franchises carried more than 110 million passengers last year, covering inter-urban, commuter and rural routes. The franchises connect passengers travelling into and between the key strategic cities of Leeds, Liverpool, Sheffield, Manchester and Newcastle, and onwards to Edinburgh and Glasgow.
A public consultation into the future of rail services in the north closed on Monday and responses will be taken into account as the franchise proposals are developed further ahead of the Invitations to Tender in December.
Source – Northern Echo, 19 Aug 2014