Train passengers in the North East expressed their “disappointment and anger” over the reprivatisation of East Coast train services.
The franchise was handed over to Stagecoach and Virgin – an act rail users in Tyne and Wear described as a “fait accompli.”
“Our publicly owned East Coast rail returned money to the taxpayer over the last five years, contributing to £1 billion to the government – far more than when it was run by private companies GNER and National Express,” said Vicki Gilbert, chair of the Tyne and Wear Public Transport Users Group.
“For rail passengers from the North East and elsewhere, it is likely that there will be new larger fare increases along with cuts in costs, by reducing the staffing on trains and at stations.
“This will mean a poorer service for passengers, while profits go into the pockets of the Stagecoach and Virgin’s companies shareholders.
“This cost cutting is very concerning for everyone but particularly for the disabled and vulnerable, who rely on assistance with wheelchairs and pushchairs.
“This will also affect passengers’ personal security, with figures already showing an increase in violence, drinking, anti-social behaviour and attacks across the entire rail network in England.”
Jarrow MP Stephen Hepburn also expressed his opposition to the move, which the government hopes is a case of third time lucky after two previous private franchises running the line collapsed, causing it to be placed into the hands of the state owned Directly Operated Railways in 2009.
“Over the past six years since it was re-nationalised the East Coast mainline has gone from strength to strength and it is a disgrace that the Tories are selling it off before the election,” Mr Hepburn said.
“The Tory-led Government’s plans defy all logic and by taking East Coast out of public ownership all the government is doing is passing the income the line raises into the back pockets of the profiteers.”
Under the new name of Virgin Trains East Coast, the franchise’s first service left Newcastle bound for London at 7.55am on Sunday.
The Department for Transport said it was confident that the new franchise was the best way forward, but trade unions have pointed to the huge sums the publicly owned line has been able to return to the Treasury.
TUC general secretary Frances O’Grady said:
“It is disappointing to see East Coast in private hands after five years of public sector success. The Government’s decision to re-privatise the line is a costly mistake.”
But a Department for Transport spokesman said:
“The skills and experience that the private sector provides drives forward innovation and investment, and has helped to transform our rail network into a real success story.
“We are confident that the new East Coast franchise gives the best deal for passengers. It will provide more seats, more services, new trains and over £140 million of investment along the route. In addition, more than £3 billion will be paid to taxpayers.”
Source – Newcastle Evening Chronicle, 02 Mar 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
> Bit of a suprise… everyone seemed to expect the French bid to win.
Virgin Trains and Stagecoach have won the franchise to run the East Coast mainline rail route, it emerged this morning.
The controversial takeover has seen the firms promise to invest £140m in the route over eight years, and will pay the government £3.3bn for the contract.
Rail Minister Claire Perry is expected to be at Newcastle Central Station today and the franchise, which covers the route between London and Edinburgh, has been publicly run since 2009.
The anticipated move was lambasted by Labour MPs in the North East, after the publicly-run Directed Operated Railways brought the line back into profit.
Ahead of this morning’s decision, Dave Anderson, Blaydon’s Labour MP, said:
“This shows the real contempt that this coalition feels for the people of the North.
“We have seen continuing failures by private companies in running our line over the period since privatisation until the public sector stepped back in and stopped the rot and we have seen increased punctuality accompanied by increased usage by the travelling public which has delivered the best economic performance of any UK train service.
“This counts for nothing in the world of Conservative dogma. It shows, yet again, that this Government will ignore the wishes of anyone as it steams ahead with its ideological attack on the public sector in our country.”
East Coast paid a record £235m back to the Government in its final full year in public hands – up 12% on the previous year. Proof, unions believe, that a private sector deal is politically-motivated.
Grahame Morris, Easington MP, dismissed the privatisation of the line this week as “right wing Tory dogma”.
He 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.”
Source – Newcastle Evening Chronicle, 27 Nov 2014
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
The North East Combined Authority has voted for a plan which could give councils power over when and how often bus services run in Tyne and Wear
What is a QCS?
A Quality Contract Scheme is a legal power over bus services by a council. In this case, the North East Combined Authority will set ticket prices, routes and timetables across Tyne and Wear and on some routes in and out of County Durham and Northumberland.
NECA will also decide what types of buses are used. Nexus, the public body which devised this scheme and currently manages the Tyne and Wear Metro, will collect fares and pay bus companies to provide bus services through contracts. This is a big change to the present market, where buses companies decide on prices and routes.
What is wrong with the current system?
NECA believes a QCS will be better than leaving things as they are. It argues people are put off using buses because fares have gone up on average 3% more than inflation for a decade.
Today, councils pay bus operators to provide less-used bus services, and subsidise some fares – as well as funding the free bus pass for older and disabled people.
This adds up to £56m-a-year in Tyne and Wear, money is running short and the cost of the free bus pass – which councils must pay by law – is growing, meaning that the other bus services councils pay for will have to be withdrawn.
So, everyone agrees it is great?
Not exactly. The bus companies – mostly Stagecoach, Arriva and Go-Ahead – strongly disagree with the move and recommended a voluntary system that gives them more freedom. They say a QCS a “huge gamble” that could lead to higher fares, worse services and higher tax bills in the long run.
Kevan Jones, MP for North Durham, also has “serious concerns”. He said profitable services in urban Tyne and Wear subsidise the rural bus network in Northumberland and County Durham. He is worried that subsidy would dry up under the new QCS.
Will it mean services cost more or less?
Nexus says fares are likely to go down. Future fare rises will be limited to inflation levels and only changed once a year.
New cheap fares for people aged 16 to 18 will be the same price as today’s fares for children.
There will be discounts for students and a new deal for older and disabled people who want to travel before 9:30am.
Nexus says around four in five adult passengers will see prices stay the same or go down when the new QCS fare zones begin.
Won’t this cost councils lots of money, then?
The idea is it will actually save councils money. Bus companies now make about £20m profit in the region every year, but Nexus estimates 80% of that money leaves the region. NECA says more of this profit from fares will be re-invested locally and this in turn will protect services now funded by councils that might otherwise be lost.
How would an Oyster card-style system work here?
In London, the one Oyster card allows you to travel on any bus, any train, any tube or any ferry. They can use Oyster as a season ticket or they can use Oyster to pay for single journeys.
The Tyne and Wear version will be called the Smartcard. Having one will get you on any bus, any Metro, the ferry or local train.
If you travel paying for single journeys and reach the daily ticket price, what you pay is capped – so you will always get the best deal, without needing to plan your day in advance. The technology for the Smartcard is in place already.
What if I am travelling in or out of Tyne and Wear from County Durham or Northumberland?
Most bus routes in and out of Tyne and Wear from County Durham, and some of those from Northumberland, are included in the plan for the whole route. That means the Smart tickets, the QCS network and lower prices will be available when you travel into Tyne and Wear.
Will there be fewer buses and will buses go the same routes?
Routes will be the same as now on the first day of a QCS, Nexus says. The difference is people can suggest improvements through new Bus Boards in each area.
Council leaders want to protect services and begin to grow them. They hope it will ultimately mean cheaper fares and bus and rail networks that work together better.
If the QCS does not happen, Nexus and NECA say cuts are inevitable, particularly to young people’s fares, school buses and evening services now paid for by local councils.
How will the process work if QCS is passed?
It will be April 2017 before a QCS starts – council leaders will make a final decision next year after an independent panel has reviewed the 900-page scheme agreed by NECA this week. If it goes ahead it will take Nexus two years to let contracts and gear up for change, with lots of information and engagement with customers on fare changes, smart cards and other benefits.
What happens to the bus companies and their staff?
About 3,000 people now work on bus services in Tyne and Wear, which in future will be included in the Nexus contracts.
Staff will work on the same routes and their jobs, wages and pensions will be protected by law – plus Nexus has said it will give further protections to staff – even if they have to change the bus company they work for. The scheme is supported by the Unite union.
What will happen if bus companies take legal action in the meantime?
Bus companies are worried they will lose business to rival bidders. They have threatened legal action against NECA and Nexus. Both public bodies insist they are using the law properly, however.
Nexus says QCS is legal and based on the best available facts and figures. It has also said all possible steps will be taken to make sure legal action doesn’t slow down its plan for a QCS.
Source – Newcastle Evening Chronicle, 26 Oct 2014
Control over bus services looks set to be placed in the hands of councils in the biggest shake-up of public transport for a generation.
Members of the North East Combined Authority have voted unanimously for the Quality Contract Scheme (QCS) for the Tyne and Wear area.
The proposals – if passed by an independent review board – will signal a new era of London-style bus services where passengers carry a pass similar to the capital’s Oyster card and councils decide on fares and when/how often services run.
Tyne and Wear would also stand alone outside London operating a QCS system in the biggest change since buses were de-regulated in the 1980s.
North East bus companies who bitterly opposed the plans – which will see them compete for contracts say they will continue to fight.
Councillor Nick Forbes, regional transport lead for NECA, said:
“We realise that the bus companies will find this decision disappointing. But leaders took their decision balancing the wider public interest and concluded that the voluntary arrangements proposed by the bus companies could simply not deliver our ambitions for better bus services.”
The proposals, put together by Nexus, came about after bus fares in the region rose by around 3% above RPI inflation each year since 1995.
> Not to mention all the routes the private companies, especially Stagecoach, axed. Paying more for less – it’s the British way.
Vicki Gilbert, chairwoman of Tyne and Wear Public Transport Users Group, welcomed the decision and said:
“Only a QCS will introduce any sort of democratic control over bus services, and allow decisions about services and fares to be made in the interests of all of the public as opposed to the interests of the bus operators.
“Only a QCS will place a limit on the near monopoly profits enjoyed by the bus operators. Only by making the bus operators compete for contracts will the cost of running buses come down to a level that we can afford.”
Kevin Carr, Chair of the North East Bus Operators’ Association (NEBOA), said:
“We are very disappointed, but not surprised, at the decision to press on with the contract scheme.
“Nexus has convinced the leaders to take a huge gamble, needing an £80m contingency fund on top of £51m in guaranteed funding every year. It’s not the best way of securing vital bus services for communities in Tyne and Wear.
“The latest Nexus proposals don’t offer a single extra bus or any expansion of the bus network. Bus passengers in Tyne and Wear deserve better than this scheme, which will lead to higher fares, worse bus services and higher council tax bills.”
Mr Carr added NEBOA would continue to oppose the plans at the review stage.
“Today’s decision is not final. We expect a far more rigorous examination of the bus contracts proposals by the independent review board.
“The board has a duty to determine whether these plans meet key legal, economic and value for money tests.
“We do not believe these tests have been met and we will make robust arguments to the review board to demonstrate this. Unless all of the tests have been met, the bus contracts scheme as it stands cannot be implemented.”
Bridget Phillipson, MP for Houghton and Sunderland South, however, said the bus companies must accept the decision.
She said: “The bus operators should now respect this democratic decision and work to support passengers.”
Source – Newcastle Journal, 22 Oct 2014
Bus services are better in council hands, MPs have said ahead of a vote that could dramatically change the future of public transport in the North East.
Twelve Tyne and Wear MPs have written to the North East Combined Authority leadership board ahead of their meeting this afternoon to decide whether to establish the first council regulated network of buses outside of London since 1986.
They believe the proposed Quality Contracts Scheme run by Metro operator Nexus will deliver £272m in economic benefit to the North East.
However the plans have been bitterly-opposed by bus companies Go North East, Stagecoach and Arriva, who instead want to run the network under a Voluntary Partnership Agreement called the North East Bus Operators’ Association.
They believe handing back control of buses to councils would create new risks for ‘cash-strapped’ local authorities.
Bridget Phillipson MP, who has been leading the campaign in favour of the Quality Contracts scheme, said:
“The members of the Combined Authority have a clear choice when they meet today. They can either maintain the status quo where bus operators funnel profits out of our region or support real and lasting change with a Quality Contract Scheme.
“If a regulated transport system is good enough for our capital city then it’s good enough for the people of Tyne and Wear.”
She added in her letter that the present deregulated system allowed operators to cut routes and an investigation in 2011 by the Competition Commission was critical of the service in Tyne and Wear.
Tom Dodds, secretary of the North East Bus Operators’ Association, said:
“Ms Phillipson misunderstands the partnership agreement. There are 17 successful partnerships around the country. The partnership for Tyne and Wear would be the most comprehensive of all, offering cheaper fares for 16-18 year olds, new ‘Bus2Bus’ tickets for people who use the buses of more than one company but don’t need to use Metro, and up to 50 extra buses on new services. The contract scheme promises none of that, and allows politicians to increase fares and reduce services at will to balance their books.
“If the bus network is inadequate, then the contract scheme does nothing to improve it – in fact, it freezes the bus network until 2018.”
He added that there was no action taken by the Competition Commission following their report in 2011.
Nexus claims their system would see £8m saved or re-invested into the service, reducing the profits going to bus company shareholders from £20m to £12m a year.
The letter has been signed by the following MPs
Bridget Phillipson (Houghton and Sunderland South), Nick Brown (Newcastle East), Catherine McKinnell (Newcastle North), Alan Campbell (Tynemouth), Mary Glindon (North Tyneside), Stephen Hepburn (Jarrow), Emma Lewell-Buck (South Shields), Chi Onwurah (Newcastle Central), Ian Mearns (Gateshead), David Anderson (Blaydon), Julie Elliott (Sunderland Central) and Sharon Hodgson (Washington and Sunderland West).
The North East Combined Authority’s leadership board, which is made up of the leaders of seven local authorities, will take a vote today at the Civic Centre in Newcastle whether to proceed with the Quality Contracts Scheme after it was endorsed by its transport committee earlier this month.
Source – Newcastle Evening Chronicle, 21 Oct 2014
The next East Coast trains operator must be stopped from cutting Northumberland rail services, county council bosses have said.
Northumberland County Council has joined a growing number of groups to express concern that the new East Coast franchise could see operators allowed to axe stopping services in the county.
In the council’s formal response to the rail consultation, Northumberland councillor Ian Swithenbank warns of service cuts to and from London which would hit the county if a new big-money operator is not forced to match current standards.
He points out that the new franchise would let operators choose to drop the early morning service from Berwick, Alnmouth and Morpeth, which then calls at Newcastle and straight on to London, bringing a business market to the capital.
The return journey faces similar peril. Mr Swithenbank said the consultation document had: “no mention of any requirement to maintain the existing Friday-only 7.30pm from Kings Cross calling, among other stations, at Morpeth, Alnmouth and Berwick, thus removing an important link from London for weekend visitors and county residents returning late on Friday from the capital.”
There is also no mention of any requirement to provide an evening Monday-Friday departure to Morpeth significantly later than 4pm.
Further service cuts could come on Sunday services to capital. The Government has no requirement for a direct train from Morpeth to London and the number of trains from London to Morpeth is reduced from five to four, a 20% reduction in provision in train service to the county town, which the council says will reduce journey opportunities both for visitors to the county and residents returning from the South.
Backing the council is Berwick Labour candidate Scott Dickinson. He said: “I welcome the intervention of councillor Swithenbank on this vitally important issue for North Northumberland in particular.
“The reprivatisation of East Coast and the decisions taken on the tender specification by the coalition government effectively relegate this important transport link for Northumberland. This will seriously damage our economic prospects.
“The minister needs to answer the questions. My real worry is that the decision to re-privatise East Coast after two private sector failures will end up costing the tax payer more and will lead to a second class service in Northumberland.”
The Department for Transport is set to decide on who should take over the state owned railway this autumn. Bidders include west coast operator Virgin Trains with Stagecoach and a joint bid from Eurostar and French state-backed firm Keolis.
Labour has called for the profitable route to remain in public hands.
Source – Newcastle Journal, 24 June 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