Unions demand East Coast rail franchise remain in public hands

Oct 2 2009 by William Green, The Journal

Lorraine Ward, from the TSSA union, said: “What we need are some crowd pleasers in our manifesto and nothing would please the crowd more than Labour shouting from the station rooftops that the railway gravy train has hit the buffers.”

Junior Transport Minister Chris Mole said: “Let’s be clear National Express’s behaviour in seeking to renegotiate the East Coast Main Line franchise was completely unacceptable.

“The action that we that took on that day in July was designed to send the clearest possible signal that under this Government there will be no bailouts for private train companies that are unable to fulfil their commitments. We have therefore set up a publicly-owned company to bring the East Coast franchise back into public hands where it will remain for at least the next two years.

“This will bring a much-needed period of stability for passengers and staff alike. It also provides us a breathing space so we can really learn the lessons from the failure of National Express and their predecessor GNER,” said Mr Mole.

He also promised a “comprehensive debate” about getting the best deal for staff, taxpayers and passengers – although the failure of his boss Lord Adonis to speak raised eyebrows.

Meanwhile, it emerged Elaine Holt, who will head the publicly-owned East Coast Main Line company that will run services, will be paid between £175,000 and £180,000 for her services. The Prime Minister is paid £192,250 a year.

Tyne Bridge MP David Clelland, a member of the Commons transport committee, said: “Obviously that seems a lot of money, but that is the world we live in. Chief executives at that level are paid that kind of money so I don’t see how it can be avoided.”