System comes under fire as rail franchise flops
Nov 6 2009 by William Green, The Journal
MINISTERS are being urged to overhaul the system of rail franchises as flagship East Coast services are nationalised next week.
The call from business chiefs and MPs comes as current operator National Express follows predecessor GNER in failing to meet their franchise commitments amid financial problems.
Concerns have focused on the vast amounts promised by the two companies to win the prestigious contract – with National Express pledging to pay £1.3bn to the Government when it won the deal in 2007. East Coast services, linking the region with London and Scotland, will switch to a Government-controlled company at one minute before midnight on November 13, a month earlier than announced initially.
The news comes after The Journal last month revealed Transport Secretary Lord Adonis was planning to nationalise the franchise within weeks. Speaking yesterday, Lord Adonis said: “I can assure the travelling public that services will continue without disruption and all tickets will be honoured.” Staff currently employed by National Express East Coast will transfer to the new operator, which will trade as East Coast. Services will remain in public hands for at least two years.
