By Vivienne Russell
27 July 2009
MPs have demanded an overhaul of the rail franchising system, describing it as a ‘mess’ that allows operators to walk away from their responsibilities when times get tough.
The report of the Commons transport select committee, published today, condemned recent above-inflation fare increases, service reductions and staff cuts as ‘unacceptable practices’. The MPs supported Transport Secretary Lord Adonis’s promise to close the loophole that allows fare rises as high as 11% on some routes.
Committee chair Louise Ellman said: ‘There is no point involving the private sector if companies can cream off the profits in good times, but leave passengers and taxpayers to pick up the bill when hard times hit.
‘The government must continue to hold firm on its commitment not to renegotiate franchising contracts.’
Ellman added that the committee supported the government’s decision to take responsibility for the East Coast Main Line franchise after the failure of two major contracts in three years. The franchise should stay in public hands so that the performance of other franchises can be benchmarked against it, the committee said.
It also called for franchises to be let on a longer-term basis and to be more passenger focused, taking account of passenger satisfaction data.
Adonis welcomed the committee’s support. ‘We are putting the passenger first when negotiating new franchises,’ he said.
‘Revenue from rail franchises is enabling us to make record investments in upgrading the network and services on it. Passenger numbers are at their highest levels since the 1940s, punctuality is over 90% and overall passenger satisfaction is steadily rising.
‘However, there is no room for complacency. I am considering reforms to improve the rail franchising system, including longer franchises and a reform of the special purpose vehicle model for managing individual rail businesses. I intend to consider these issues fully before reletting the East Coast Main Line franchise next year, and will consult fully before any decisions are made.’
27 July 2009
MPs have demanded an overhaul of the rail franchising system, describing it as a ‘mess’ that allows operators to walk away from their responsibilities when times get tough.
The report of the Commons transport select committee, published today, condemned recent above-inflation fare increases, service reductions and staff cuts as ‘unacceptable practices’. The MPs supported Transport Secretary Lord Adonis’s promise to close the loophole that allows fare rises as high as 11% on some routes.
Committee chair Louise Ellman said: ‘There is no point involving the private sector if companies can cream off the profits in good times, but leave passengers and taxpayers to pick up the bill when hard times hit.
‘The government must continue to hold firm on its commitment not to renegotiate franchising contracts.’
Ellman added that the committee supported the government’s decision to take responsibility for the East Coast Main Line franchise after the failure of two major contracts in three years. The franchise should stay in public hands so that the performance of other franchises can be benchmarked against it, the committee said.
It also called for franchises to be let on a longer-term basis and to be more passenger focused, taking account of passenger satisfaction data.
Adonis welcomed the committee’s support. ‘We are putting the passenger first when negotiating new franchises,’ he said.
‘Revenue from rail franchises is enabling us to make record investments in upgrading the network and services on it. Passenger numbers are at their highest levels since the 1940s, punctuality is over 90% and overall passenger satisfaction is steadily rising.
‘However, there is no room for complacency. I am considering reforms to improve the rail franchising system, including longer franchises and a reform of the special purpose vehicle model for managing individual rail businesses. I intend to consider these issues fully before reletting the East Coast Main Line franchise next year, and will consult fully before any decisions are made.’
