East Coast Main Line to come under public ownership in December

Nov 4 2009 by Adrian Pearson, The Journal

THE East Coast Main Line rail is expected to officially come under public ownership on December 12.

Rail bosses at National Express are to hand over control of East Coast services to the Government after failing to renegotiate a franchise, according to union leaders.

The Government is unlikely to interfere in the day-to-day running and would leave in place the controversial £5 seat reservation fee.

Ministers are also expected to approve a “limited” rebranding exercise which will see old National Express signs covered up, with some uniform changes. When rail bosses last carried out a similar rebranding the bill added up to £1m.

This could mean vital investment cash is diverted away from running trains into less important areas.

The detailed plan is revealed in an internal Government briefing released by unions in which it explains how ministers do not expect the franchise to be re-let to the private sector until mid-2011.

The date means the franchise will be run by the Government for at least 18 months, several months longer than originally expected.

A new publicly-owned company will be called East Coast Main Line, according to the presentation. New uniforms were introduced recently, but staff will receive new ties and scarves as part of the changeover. Union bosses last night pilled pressure on the Government to make the move permanent.

Bob Crow, RMT General Secretary, said: “We demanding an absolute assurance this will be a permanent move that recognises the chaotic failures of privatisation on this prestige route on the UK rail network. It would be a total waste of taxpayers’ money and staff time and energy to have a third gamble on privatisation in 18 months time. We are also demanding the Government get off the fence and strip National Express of their two other franchises – C2C and East Anglia – under the cross-default clause. Anything else would be a reward for failure on a massive scale.

“Finally, we want a clear recognition of the hard work and dedication of staff who have kept the East Coast Main Line running throughout the privatisation fiasco and an assurance there will be no attacks on their benefits or working conditions.”

Anthony Walker, from passenger group Railfuture North East said the Government had to recognise its franchise system was flawed.

He said: “Passengers, together with existing National Express East Coast staff, now seek certainty and consistency in the provision of East Coast services, a provision which must include good punctuality, sensible fares and quality on-board attention to detail. As for what should happen next, Railfuture North East wants the Government to consider establishing a national Inter-City concession for long distance services as in Germany.

“This would be let out over say 20 years with the incumbent operator, state or private, bench marked against tough, but realistic, conditions.”

A spokesman from the Department for Transport said the Government expects to take over operations “around the end of the year, although no date has been set, and this would be the point at which the Government will assume control of the franchise”.