Taxpayers could foot Northern Rail fiasco bill
THE Northern Rail fiasco could end up costing the taxpayer millions in compensation schemes and fare rises, MPs have warned.
The minister of State for the Department for Transport (DfT) yesterday apologised again to passengers hit by the chaos and promised a compensation scheme – but admitted they were yet to figure out who would pay for it.
During a Westminster debate over the timetable debacle, Jo Johnson reiterated plans to resolve the major issues with the service and launch an inquiry into what went wrong.
The minister also vowed to deliver a compensation scheme for season ticket holders in line with what Southern passengers received last year when their routes were hit by industrial action.
He said the bill for the scheme would be footed by ‘the rail industry.’
When questioned on whether these costs would be met by the DfT, Network Rail (a branch of the DfT) or the rail operators, he asked for a ‘few more days’ to ‘work with the players’ and respond. This raised fears the bill could end up being entirely or partially footed by the taxpayer.
Asked if the government should have seen the crisis coming, Mr Johnson promised an inquiry which would also probe whether Northern had fulfilled its contractual obligations.
He said they were making ‘positive progress’ and urged passengers to ‘have hope.’
But Rachael Maskell, MP for York Central, warned the government to ‘expect law suits’ from operators ‘whose sole purpose was to get profit out of the state’ and which will have been left outof-pocket by cancellations and delays.
She said operators leased trains at an ‘exorbitant rate’ from investment fund managers but that this rolling stock couldn’t operate due to delays in electrification.
Northern had cut staff for their own financial gain and failed to recruit staff for the new timetable, while trying to get rid of guards, she claimed.
Accusing Chris Grayling, the transport secretary, of ‘sheer incompetence’ for allowing the timetable to go ahead ‘hoping it would be the least worst situation,’ she called for his resignation.
She added: “How much is all this going to cost the public through future ticket increases?
“The money has to come from somewhere.
“It’s going to be taxpayers and passengers who will ultimately pay and they need to know.
“This isn’t a story that will end happily ever after.
“The Great British public have been completely let down.”
The minister’s apology followed a debate in which Greater Manchester MPs blasted the weeks and months of turmoil suffered by their constituents.
Sir David Crausby, MP for Bolton North East, who had called the debate, said afterwards: “It could be costly for taxpayers. But I think the bulk of the blame sits with Northern, they don’t have enough drivers and the Secretary of State should be strong enough to say that.
“Northern should foot the bulk of this bill.”
During the debate he added: “If this had happened in the southeast, the franchise would have been removed and the Secretary of State sacked already.
“Whether that’s fair or not, that’s how people in the north feel.”