Daily Mirror (Northern Ireland)
Branson’s pickle Virgin tycoon criticised over struggling East Coast line
SIR Richard Branson has been blasted for defending his bailed-out Virgin Trains East Coast line.
The billionaire blamed Network Rail, which owns and operates the nation’s tracks, for difficulties with the delay-ridden service.
The tycoon also claimed he and Stagecoach, which holds 90% of the franchise, had lost “well over £100million” since taking over the route.
But TUC General Secretary Frances O’grady hit back, saying: “It’s a pathetic excuse.
“Branson has made a fortune out of rail passengers and taxpayer subsidies. But he’s invested very little back.”
The TUC is among those calling for the East Coast rail franchise to be returned to public ownership.
The intercity line was in public hands between 2009 and 2015.
Stagecoach and Virgin won the franchise, promising to pay £3.3billion to the Government by 2023. But last November, Transport Secretary Chris Grayling allowed them to pull out three years early, in 2020, because of mounting losses.
Lord Adonis, former chair of the National Infrastructure Commission, claimed it would cost the taxpayer billions of pounds.
Branson responded to the criticism, saying: “There has been a lot of heat, but not much light.”
In a blog, he said delays with infrastructure upgrades and new trains had “torpedoed the
Oil = $67.67 assumptions of our original bid.”
He claimed they had improved services through £140m of investment but had “lost significant amounts of money”. He added: “We could swallow those losses and simply walk away from the franchise as others have done before. That would be easier. But it would also be wrong.”
Cat Hobbs, director of campaign group We Own It, said: “Branson is right about one thing – investment happens too slowly because the railway is a fragmented mess.
“That’s why we need to end the blame game and run our railway as one efficient, accountable network for passengers, not shareholders.”
Andy Mcdonald, Labour’s Shadow Transport Secretary, said: “The bailout of the East Coast rail franchise is undoubtedly good news for the pay packet of Richard Branson, but not for taxpayers and passengers who have been shortchanged by up to £2bn.”