Tagged: stakeholders

Legal battle looms over sell off of East Coast main line

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

Northumberland blocked from Government tourism cash bid

Tourism projects vital to Northumberland will be denied a chance to bid for Government cash.

Hopes of building on Northumberland’s tourist hotspot status were dashed when planners were told the latest Government advice was that new projects would not bring in enough jobs and so will not get any cash from a £2bn local growth fund.

Officials in Northumberland were told the news when they asked for £2m from the North East Local Enterprise Partnership, the business-led group backed by Government tasked with co-ordinating job creation efforts. Cash would have gone towards The Sill project, a visitor centre which would have created more than 100 jobs.

The partnership told Northumberland the blame lay with the Government, saying cities minister Greg Clark made the blunt assessment of the likelihood of funding bids being successful when he met business and council leaders last week.

But last night the Cabinet office said it was “absolutely wrong” to rule out tourism projects, and insisted the North East could try for cash if it could prove that the tourism project would create jobs.

Tourism in Northumberland alone is said to support some 16,000 jobs, but, Northumberland County Councilhas been told, strict funding rules for the new cash pot will rule out supporting visitor centres, galleries or hotels. The snub has raised fears at County Hall that money handed to the region through the Local Growth Fund will almost entirely benefit urban Tyneside and Sunderland.

 Liam Carr, Labour’s Hexham candidate and a Newcastle College lecturer, said: “This shows how out of touch the coalition is in the North East.

“To say that ‘tourism isn’t an economic priority’ downplays the significant role this sector plays in the wider Northumberland economy but especially in Tynedale. Last year it accounted for over £700m in the county economy and underpinned over 13,000 jobs. The Conservative-led coalition doesn’t understand our needs.”

The Sill project, based near Haydon Bridge, is for a discovery centre and office space bringing in an expected 100,000 visitors, with 15,000 expected to stay overnight.

The partnership’s tourism advice also raises question marks over further tourism cash for other Northumberland projects, including a share of the £7m needed to further develop Kielder Forestwith a tree top walkway adventure centre and wildlife support.

A Cabinet Office spokesman said: “It is absolutely untrue to say that tourism projects are less likely be successful in bids for local growth deals.

“Any bid must be able to show good evidence of benefits for the local economy in terms of jobs and growth, and bids from the tourism industry will be considered on their individual merits alongside every other sector. It is for the North East Local Enterprise Partnership to decide what priority they give to the individual bids in the region, according to the evidence provided.”

A spokesman for the partnership said they were still finalising plans, adding that: “We have been advised that tourism and cultural projects are less likely to achieve these ambitious measures.

“This does not mean the end for the Sill or other projects which could not be prioritised at this time and we will be working with partners to identify alternative funding sources wherever possible.”

Source – Newcastle Journal,  25 March 2014

And on a similar theme…

 

The Trust set up to safeguard Hadrian’s Wall is to be closed down as a result of funding cuts.

Staff at the Hadrian’s Wall Trust face an uncertain future after English Heritage decided it had no option but to pull the plug on support.

The body had being tasked with managing the World heritage Site, but control will now have to be shared among various councils along the route.

English Heritage, Natural England and the eight local authorities who part fund the Hadrian’s Wall Trust are working with NorthumberlandNational Park Authority and the Chairman of the World Heritage Site Management Plan Committee, to put new arrangements in place to safeguard one of the country’s most famous landmarks.

Henry Owen-John, English Heritage planning and conservation director for the North West, said the funders were left with little choice.

He said: “The Trust as a charity is working in a pretty tough financial climate, as are the people who contribute funds to it, such as English Heritage.

“The Trust has been very successful in raising money for specific projects, but the difficulty is finding funding to cover its core costs, the day to day costs, and it is this which has led us to our decision.

“These are difficult times that we all have to operate under. The Hadrian’s Wall World Heritage Site is unusual in that we do not normally cover the management sites, it is really just this and Stonehenge where this happens, and we have to bring that situation here to an end, and try to get the management self sustaining.

“The people who will take over after the closure of the trust are committed to the future management and coordination of the sites.

“Northumberland County Council will take a lead role in coordinating this now.”

Mr Owen-John said promotional work this year will continue.

“It will take approximately six months to bring the affairs of the trust to a satisfactory conclusion, and the spring and autumn promotional work will continue as planned this year.

“We want to continue marketing Hadrian’s Wall as a whole rather than each council just marketing its bit of the wall.”

English Heritage has had a hard time when it comes to securing Government cash. In 2010 it had some 30% of its budget axed.

In 2013 the Department for Culture, Media and Sport came back for more cuts, asking for 10% from the heritage group’s 2015/16 budget.

Last month The Journal revealed concerns among North East councils that plans to reform English Heritage could see it cherry pick the best sites for its new management arm at the cost of less glamorous sites.

The changes have prompted fears from former Newcastle council leader Lord Beecham and former regional minister Nick Brown that the moves were akin to privatising the service.

In response, Sir Laurie Magnus told The Journal he wanted to “make clear that English Heritage considers its sites in the North East to be among the most important, interesting and beautiful in England. The advantage of the proposed change is that we will be able to invest more in them not less.”

In Northumberland it is hoped the staff currently working for the trust will, where possible, be found work with the councils and other bodies helping look after the wall in future, with decisions being made over the next six months.

Grant Davey, leader of Northumberland County Council: “Hadrian’s Wall is a core part of the county’s tourism industry. We are working alongside our partners with businesses, communities and all other stakeholders along the route to support them and keep them informed of developments. Our priority is safeguarding the Wall into the future.”

Source – Newcastle Journal, 25 March 2014