Franchising broken
“The franchising model is broken and passengers are paying the price,” says Public Accounts Committee chairman.
THE problems with Virgin Trains East Coast and with Thameslink, Southern and Great Northern highlight the broken model of franchising, according to the Public Accounts Committee (PAC).
In its Rail franchising in the UK report, published on April 27, PAC said: “We are deeply concerned that the Department for Transport’s management of two of its most important rail franchises has been completely inadequate and could be indicative of wider weaknesses in its contract management capability.”
Immediately the RMT union called for Secretary of State for Transport Chris Grayling to resign, while the DfT called the report imbalanced.
PAC Chairman Meg Hillier said: “The operation of the Thameslink, Southern and Great Northern franchise has been a multi-faceted shambles causing untold misery for passengers.
“In both cases the Government appears to have seen its task as simply to contract out the service, with wholly inadequate consideration given to passengers’ best interests and behaviour.
“This imbalance cannot continue. The franchising model is broken and passengers are paying the price.
“If taxpayers are to have any faith in Government’s ability to deliver an effective passenger rail network then it must conduct and act on a thorough review before any further franchises are awarded.”
PAC recommends that Government should ensure that the priorities and incentives of Network Rail and the franchisee are aligned to serve the passengers, that the DfT should reflect on lessons from TSGN about the level of change on any one route, and that by September the DfT should write to PAC explaining how it has reviewed its approach to performance management of franchises. DfT must also write to PAC before it awards any more franchises, to explain improvements it has made on understanding what causes changes in passenger demand.
RMT General Secretary Mick Cash said: “When the cross-party Public Accounts Committee says the franchising model is broken, and that this government is to blame for both the Southern and East Coast fiascos that have cost the economy and taxpayer billions, Chris Grayling has no option other than to resign.”
Shadow Transport Secretary Andy McDonald said: “The committee’s findings confirm what Labour has been saying for years. The rail franchising model is on life support and is being ideologically propped up by a Tory government which has run out of ideas.
“It’s time Chris Grayling pulled the plug on this discredited and disintegrating system. It is clear that public ownership is the only sensible option for the future of rail.”
ASLEF General Secretary Mick Whelan said: “There are times when we do not want to be proved right - as we want our industry, the rail industry, to be at the heart of the economic regeneration of this country - but this report, which is a devastating indictment of the failed franchising system, shows that we
were right all along.
“This report recognises what we have been saying for years - that this flawed dogma-driven model is not fit for purpose and is, indeed, on the verge of collapse.”
A DfT spokesman told RAIL: “It is disappointing to see the committee has produced such an imbalanced report that fails to grasp the complexity of the situation, including failing to challenge inaccurate claims from the RMT.
“It also fails to understand that the Department expressly created the Thameslink, Southern and Great Northern franchise to deliver the Thameslink Programme - a once-in-a-generation infrastructure upgrade to revolutionise northsouth journeys through London for millions of passengers.
“The delay and disruption Southern passengers experienced due to strike action in 2016 was unacceptable, but services have improved dramatically and a brand new programme will begin next month bringing further improvements to their journeys.
“Our franchising model already puts passengers and taxpayers first, and has doubled the number of passengers using trains since privatisation reversed decades of decline and underinvestment under British Rail.”
“We welcome the Committee’s recommendations around infrastructure planning and risk sharing, which will help deliver a better railway and build on the significant benefits that franchising has delivered.”
Rail Delivery Group Chief Executive Paul Plummer said: “Franchising has brought significant benefits to passengers and the taxpayer, with services up by a quarter and running costs going from the red to the black, freeing up taxpayer’s money. We agree, though, that the current system should be reviewed and improved, and the report makes a number of sensible recommendations.”