Geoff Hoon refuses to let rail bosses off hook

May 15 2009 by William Green, The Journal

TRANSPORT Secretary Geoff Hoon yesterday ruled out renegotiating the East Coast rail franchise as growing numbers of MPs expressed concern.

The fate of the critical rail link between the North East, London and Scotland has been at the centre of speculation for months because the recession has squeezed profits for operator National Express.

The company’s pledge to pay the Government £1.4bn for the right to run services on the route depended on strong passenger growth, but that has been hacked back by the economic downturn.

And National Express has been accused of “mugging” passengers by charging for seat reservations on the East Coast Main Line – with union bosses accusing the company of “bleeding passengers dry” to prop up profits.

The operator is set to introduce a £2.50 fee for reserving a single or £5 for a return ticket from this weekend on its East Coast and East Anglia franchises.

And the future of the franchise was yesterday raised in the Commons by Labour’s Ann Cryer amid suggestions National Express is seeking different terms or will hand back the keys altogether.