16 October 2008
By Julie Read
The Department for Transport's takeover of passenger rail franchise awards has provided savings to both taxpayers and passengers, according to a report from the National Audit Office.
The DfT, which took over the franchising process from the Strategic Rail Authority in 2005, had also improved railway performance through its service specifications for train operating companies, the report said.
The continued rise in the number of passengers and length of passenger journeys is projected to result in a turnround from a taxpayer subsidy of £811m in 2006/07 to a dividend of £328m by 2011/12.
But the report, published on October 13, warned that commuters would face ever more crowded trains and a spike in fares until planned improvements were carried out.
Tim Burr, head of the National Audit Office, said: 'The Department for Transport has contracted to save the taxpayer money while improving service quality, but it will need to see that capacity increases are well managed and timely if passengers are to expect less crowded and more reliable journeys.'
Anthony Smith, chief executive of consumer organisation Passenger Focus, said: 'These findings highlight how important it is to get franchises as right as possible from the outset.
'Getting the best deal for passengers should always be the aim of establishing a new franchise.'
The DfT aims to increase capacity on the network by 22% with an extra 1,300 carriages.
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