East Coast franchise

The House of Commons Transport Select Committee is to investigate the causes behind the failure of the Intercity East Coast franchise.

In a statement released on February 12, the TSC said it would also look into the best options to maintain services on the route.

In oral evidence submitted to MPs on January 22, Secretary of State for Transport Chris Grayling said the reason the franchise ran into difficulties was “purely and simply about the revenue that it has received to date”.

This is the third franchise to collapse on the route since the start of 2007.

TSC Chairman Lilian Greenwood said: “This failure - not once, but three times - has drawn criticism from all corners.

“There are serious questions to be asked of the train operator, Network Rail and ministers, and the Transport Committee intends to ask them. The failure of the East Coast franchise has wider implications for rail franchising and the competitiveness of the current system. Lessons need to be learned by all concerned.

“In the meantime, the Department for Transport must take the right steps to protect passengers and taxpayers. Safeguards must be put in place to restore public confidence in the sustainability of our railways.”

The TSC said its inquiry will examine “the lessons to be learned from this and previous franchise failures on this part of the network; the best way forward in the short and longer term; and the wider implications for the rail franchising system.”

It is especially interested in: ■ The reasons for the failure of the current franchise agreement, lessons learned from previous failures of franchises on the East Coast Main Line, and the steps the DfT needs to take to guard against future failures. ■ The management of infrastructure works on the East Coast Main Line, including the relationships between the Department’s aspirations for the franchise, the operators’ obligations in the franchise agreement, and planned Network Rail infrastructure works. ■ The Department’s contingency plans, particularly the steps it is taking to minimise risk to passengers and taxpayers. ■ The readiness of the Department to act as an operator of last resort. ■ The feasibility of the Department’s proposal to establish a public/private East Coast Partnership, to be operational by 2020. ■ The wider implications for rail franchising of the failure of the East Coast franchise, including for the competitiveness of the system.

Written submissions should be made by March 26.

RMT General Secretary Mick Cash said: “The inquiry by the House of Commons Transport Committee is useful if it helps nail down those responsible for dragging the East Coast Main Line into this latest private failure on these key inter-city services.”

Grayling said in the House of Commons on February 5 that the franchise will run out of money, and that he is considering either a new contract for Stagecoach (to be operated on a short-term, not-for-profit basis, with the only potential reward to be received at the end of the contract in return for clearly specified passenger benefits), or that the Virgin Trains East Coast franchise would be directly operated by DfT through an Operator of Last Resort ( RAIL 846).