We live in interesting times, public transport wise at least, with the distinct possibility that the rail franchise system operating system, rather than the trains themselves, is ceasing to operate. The UK Transport secretary has instructed preparations be made for Directly Operated Railways, which is a government owned company, to undertake the minimum preparatory measures necessary to operate train services in the event of a failure to agree the terms of an interim agreement with the existing Franchise operator for the Great Western rail franchise.
This announcement follows the news that the competition to run the Great Western rail franchise between south Wales and London is being scrapped. This follows advice from the Chair of Eurostar Richard Brown who has been investigating the collapse of the West Coast Main Line franchise deal. Back in March (2012) FirstGroup, National Express, Stagecoach, and Arriva (part of Deutsche Bahn) were all short-listed for the Great Western franchise.
The UK Transport Secretary (Patrick McLoughlin) is looking to negotiate an interim franchise of at least two years with current operator FirstGroup. In a Parliamentary statement, the UK Transport Secretary announced that he would begin "a more fundamental review of the franchise proposition, recognising that this is a large and complex franchise which will need to manage service delivery whilst the route is electrified and new rolling stock is introduced."
A parliamentary report into the collapse of the West Coast Main line franchise deal, was not unanimous, several committee members markedly choose not to blame government ministers. The report which scrutinised the scrapping of the £5 billion pound franchise revealed that the decision cost around £50 million pounds of public money.
The Department for Transport has chosen to blame human error for the fiasco and admitting that "Independent experts concluded the collapse of the West Coast franchise programme was caused by a number of failures including inadequate planning and weak governance structure, but not systematic failings in the department.” Despite this the DfT has chosen resume the competition for the Essex Thameside (15 years), Thameslink, Southern and Great Northern franchise (7 years), while suspending the completion for the Great Western franchise.
The collapse of the West Coast Main Line franchise deal which MPs said was the result of "irresponsible decisions" and "major failures" on the part of the DfT and the civil service people may wonder whether the rail franchise system is fit for purpose. Interestingly enough back in July 2009, the then New Labour government stepped in to run a failing private rail franchise - the East Coast Rail Service - which was a polite way to effectively nationalise it, because National Express was in difficulty. National Express also ran the Stanstead Express, East Anglia and c2c - but walked away from running the East Coast Service (which it operated as standalone company, NXEC) yet got to carry on running those bits of the network it could squeeze a profit from?
All of this nonsense is carried on at our expense. Clearly the rail franchise system is no longer working as envisaged when the railways were broken up privatised. It’s time to do something different and to run our railways on a not-for-distributable-profit basis, so that profits would be ring fenced for reinvestment in rail services rather than pumping up the profits and the dividends.
Showing posts with label DfT. Show all posts
Showing posts with label DfT. Show all posts
Sunday, 3 February 2013
Monday, 18 July 2011
AN INTERESTING BUSINESS PLAN?
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.
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.
Thursday, 16 June 2011
BRIDGE TOLLS
The Humber Bridge is to become Britain's most expensive crossing, after an application to increase tolls by 11% was approved by the Con Dem government. The price rise was given the go ahead by the Department for Transport (DfT), but some local businesses and residents have voiced concerns about the move.
The Humber Bridge Board had applied to the DfT to raise tolls by 11% from £2.70 to £3 per crossing to pay back its £330 million debt. Approval was given after the planning inspectorate recommended the rise following a three-day public inquiry earlier this year. A public inquiry and consultation about increasing bridge tolls - how novel?
There was consistent and persistent bleating from Westminster Labour sheep between 1997 and 2010 along the lines of there is nothing we can do to reduce or stabilise the tolls! It turns that this is or was not quite true as the last New Labour Government actively intervened in October 2009 in relation to the Humber Bridge. Perhaps New / Old [delete as applicable] Labour in Wales hoped that we would not notice?
Sadiq Khan, the then New Labour Minister of Transport, announced a grant of £6m to the Humber Bridge company, saying that, “the Government was committed to doing everything it can to protect communities and businesses from economic downturn and help the country to recover. That is why I decided not to accept the Humber Bridge board’s proposed toll increases”. Very nice if you can get it I must say - but if that was the case in England, then why not in Wales?
The Con Dems no doubt firmly believe in applying the rigours of 'free market' so obviously there will be no intervention to subsidise or stabilise bridge toll prices this time. Just for the record the SNP Scottish Government abolished the remaining Scottish bridge tolls with the Abolition of Bridge Tolls (Scotland) Act 2008 which came into effect on 11th February 2008... if only?
The Humber Bridge Board had applied to the DfT to raise tolls by 11% from £2.70 to £3 per crossing to pay back its £330 million debt. Approval was given after the planning inspectorate recommended the rise following a three-day public inquiry earlier this year. A public inquiry and consultation about increasing bridge tolls - how novel?
There was consistent and persistent bleating from Westminster Labour sheep between 1997 and 2010 along the lines of there is nothing we can do to reduce or stabilise the tolls! It turns that this is or was not quite true as the last New Labour Government actively intervened in October 2009 in relation to the Humber Bridge. Perhaps New / Old [delete as applicable] Labour in Wales hoped that we would not notice?
Sadiq Khan, the then New Labour Minister of Transport, announced a grant of £6m to the Humber Bridge company, saying that, “the Government was committed to doing everything it can to protect communities and businesses from economic downturn and help the country to recover. That is why I decided not to accept the Humber Bridge board’s proposed toll increases”. Very nice if you can get it I must say - but if that was the case in England, then why not in Wales?
The Con Dems no doubt firmly believe in applying the rigours of 'free market' so obviously there will be no intervention to subsidise or stabilise bridge toll prices this time. Just for the record the SNP Scottish Government abolished the remaining Scottish bridge tolls with the Abolition of Bridge Tolls (Scotland) Act 2008 which came into effect on 11th February 2008... if only?
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