By Richard Johnstone | 28 July 2014
Labour has pledged to reform the rules on rail franchises to allow government-owned firms and cooperatives to bid to run trains.
Speaking in Glasgow today, shadow transport secretary Mary Creagh said Labour would look to improve the representation of passenger and taxpayer interests in the franchise-award process. The Scottish shadow transport secretary James Kelly said the party would conduct a similar review in Scotland.
In particular, Creagh said the next Labour government would legislate to allow cooperative firms, as well as public sector companies, to compete ‘on a level playing field’ for UK rail franchises.
The party had previously said the East Coast mainline, which is run by the government’s Directly Operated railways agency, should remain in the public sector, with DOR also allowed to bid for other franchises as a comparator.
However, Creagh’s announcement today would make it easier for state-owned firms to win the competition to run trains outright.
‘Two decades on from rail privatisation, passengers across the UK are getting a raw deal from many of the rail operators,’ she said.
‘The first priority should be passengers, not profit. That’s why we need a new deal for our railways, in Scotland and across the UK.
‘The East Coast line, which has served passengers in Scotland well, has worked in public hands. That’s why Labour will learn the lessons from East Coast and make sure that public sector companies can compete on a level playing field with the private sector.’
Kelly, Labour’s shadow cabinet secretary for infrastructure, investment and cities, said the power to alter the terms of rail competitions would be devolved from Westminster to Holyrood in the first Queen’s Speech of a future Labour government.
‘We need our railways to be working for passengers. Under the SNP more than half a billion pounds of public money funds the rail franchise.
‘That’s why we need public sector companies to be able to compete on a level playing field with the private sector.’
