Tagged: Virgin

Train passengers ‘angry and disappointed’ as East Coast is reprivatised

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

Keeping Pacer trains on North rail routes would be ‘nothing short of scandalous’, says MP

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

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

When is a job not a job?

“The reality on the streets of Stockton South is proving very different.”
And in the rest of the North East too !

The lovely wibbly wobbly old lady

Reposted from Louise Baldock- Labour MP for Stockton South

Creating jobs or creative accounting?

You will have seen Tory boasts that unemployment is coming down, a million more people are now in work and the private sector has created many of these, but dig below the surface and we see a very different story.

I met a man in Parkfield, Stockton last week who told me he had a full time job but was made redundant. He has finally found work, 12 hours a week in Debenhams, and has been removed from the claimant figures. It might be a job, but it’s not full-time work and isn’t economically viable.

Last month I met a man in Thornaby who has just found work one day a week in a community centre in Co Durham where amongst other things he has to fundraise to pay his own wages; he was full time…

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