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Franchising


National Express had agreed to pay £1.3 billion under the original franchise, but passenger revenues were hit by the recession. Talks with the DfT about easing the terms of the deal came to nothing.


DOR paid about £600m to the Exchequer, much less than Stagecoach promised, but much more than it delivered


After the Minister’s statement, I asked him: ‘By deciding to re-franchise the East Coast Main Line in the future we risk not being able to judge whether the public sector or private sector is best for the passenger, the tax payer and the railways. Surely as a minimum we ought to allow Directly Operated Railways to bid to run the franchise?’


He rejected my plea, saying: ‘That is not the case—Directly Operated Railways is not a company in its own right; it is a company owned by the Department for Transport. We will certainly be able to see how the companies are doing. The process will be open. I have already seen reports, although I have not had it confirmed, that Virgin will put in a bid for the East Coast Main Line, and a lot of people


‘It appears that the Secretary of State is opposing a state run service on ideological grounds, and not based on evidence. He should be supporting what works best. We could learn from some of our successful neighbours in Europe, like Germany and Holland’


were very happy with the service they received on the West Coast Main Line.


Learn from Europe


It appears that the Secretary of State is opposing a state run service on ideological grounds, and not based on evidence. He should be supporting what works best. We could learn from some of our successful neighbours in Europe,


like Germany and Holland. Both have a more devolved decision making process, which means a more integrated service than the UK.


The biggest railway company in Germany is Deutsche Bahn, which is Germany’s state run railway company, and Arriva’s parent company. German Intercity routes are open to competition, but Deutsche Bahn’s dominance in the market scares off other providers. So I wouldn’t want a system that gave one public, or private, provider, that kind of dominance in the market.


I am not ideologically wedded, or opposed to rail franchises. It is clear that in some cases they have delivered. But without a public sector comparator, how can we tell what is the most cost- effective way of providing the rail network of the future?


The jury is still out on whether the franchise system can be transparent, give a good quality service to train users, and minimise the cost to the taxpayer.


For more information on John and his work visit his website at www.john-leech.co.uk/en/


MIKE WORBY SURVEY CONSULTANCY


Chartered Land and Engineering Surveyors and Geospatial Consultants measuring , modelling and mapping the


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Page 54 May 2013


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