Some two years ago what was then the New Labour Government stepped in to take over a failing private rail franchise (the East Coast Rail Service), when National Express (who also currently run the Stanstead Express, East Anglia and c2c) effectively walked away from running the East Coast Service (which it operated as stand alone company, NXEC) and carried on running those bits of the network that it could squeeze a profit out of at our expense. Here we are some two years down the line MPs have criticised the Department for Transport (DfT) for letting National Express "terminate its East Coast rail franchise in 2009 with next to no penalty.
Apparently the DfT rejected an offer of £150m from the company to quit the loss-making franchise by mutual consent. The DfT then terminated the contract, and received £120m from the company. The House of Commons Public Accounts Committee report noted that the DfT judged giving up the extra cash would reduce the risk of other companies with loss-making franchises seeking similar deals. And also noted that the DfT "undermined its position" by telling National Express any future franchise bids would be unaffected.
This unhappy saga should by now have confirmed in most people minds that rail privasation (something that New Labour publicly stated they would have undertaken if it had not already been done by the Conservatives) has been pretty much an unmitigated disaster. While going back to British Rail may not be an option, now is clearly the time to implement Plaid's idea of rail franchises being run on a not for profit basis, reinvesting their profits in their services and infrastructure rather than merely squeezing profits for the shareholders at our expense.
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