East Coast rail taken into public ownership
By politics.co.uk staff
National Express has lost control of the East Coast rail line, which has been taken over by the government.
National Express, which won the franchise from GNER in 2007, has failed to stop a slump in passenger numbers and suffered a £20 million loss in the first half of 2009.
That loss forced ministers’ hands, and they promptly refused to renegotiate the firms’ contract with the government.
Liberal Democrat transport spokesman Norman Baker said: “National Express should not be allowed to just hand back its failing East Coast operation while it continues to make a profit on its other routes. Handing back one franchise must mean handing back them all.”
Lothians MSP and transport committee member Shirley-Anne Somerville called for the Scottish government to be consulted over the future of services provided by the new public company.
“I will be writing to the UK transport tecretary Lord Adonis to ask for guarantees that the Scottish government will be regularly consulted on the service and on future plans for the ownership of the service,” she said.
“It must not simply be handed on to another private company when a not for profit option could bring real benefit to taxpayers and passengers alike.
All tickets will be honoured, the Department for Transport stressed, and East Coast rail services would continue as normal.
Staff will be transfered to a new state company set up to operate the route.
Transport secretary Lord Adonis said: “The government is not prepared to renegotiate rail franchises, because I’m simply not prepared to bail out companies that are unable to meet their commitments.
“It is simply unacceptable to reap the benefits of contracts when times are good, only to walk away from them when times become more challenging.”
The contract is expected to be put out for tender late next year.
national Expfress paid the government £1.4 billion to run the line, which runs between Edinburgh and London, until 2015.
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