Grant our wish for the Metro

GOVERNMENT URGED TO FUND £360M COST OF TRAINS

Reporter MOUNTING pressure is being put on the Government to find the £362m needed to fund new Metro trains for the region.

The Tyne and Wear Public Transport Users Group is calling for the direct grant to finance new trains to replace the ageing current fleet.

Just a week before the Budget is unveiled by Chancellor Philip Hammond, the group has collected more than 500 signatures on the petition site 38 Degrees.

The group is concerned the Department for Transport (DfT) could force Nexus to pay for the new trains via a Public Finance Initiative (PFI) loan.

This would see a company or consortium pay for the work up front and require councils to pay them back with interest over several years.

Nexus, who operate the Metro, estimate it will cost £362m to replace the fleet of trains and upgrade the system. Metro has been plagued with issues in recent years, leading to many customer complaints.

Vicki Gilbert, chair of the TW Public Transport Users Group, said: “Our Metros are breaking down on a regular basis because they are nearly 40 years old, although many think they are new trains. They were superficially refurbished but at present any replacement spare part needs to be specially handmade.”

She branded a PFI deal as “like a Wonga loan” which would “mean more cuts in our other public services to repay the interest and loan back and we the public will not own the trains”.

Gilbert added: “We have a rail service not on track for the passengers who rely upon it and that is due to current Government policy.”

A total of 563 people have now backed the petition asking for the Government to release grant funding for new Metro trains.

Newcastle City Council leader Nick Forbes, who oversees transport for the North East Combined Authority, recently confirmed representatives of the region’s councils have been in talks with the Treasury about funds to replace the ageing fleet.

Addressing a meeting of Newcastle City Council, Coun Forbes said: “On funding for Metro, there has been a year-long campaign of trying to highlight the continued failing of the system.

“We are now in talks with the Treasury, including the possibility of direct funding or a PFI. It is possible we might get an announcement in the Budget.”

The autumn Budget will be delivered to Parliament on Wednesday with campaigners hoping for an announcement on new Metro trains.

In a letter sent to Transport Minister Chris Grayling and seen by ChronicleLive, all seven North East council leaders signalled they would be ready to reject a PFI deal because they don’t think it represents good value for money. Council leaders claim it would mean new trains would not arrive until mid-2023, busting the original 2020 deadline, and would “cost at least £5m more” to implement.

They also fear it would tie the region into a “complex and inflexible” contract for as long as 35 years, which could throw into doubt ambitions to extend the Metro network.

They are also angry PFI-style deals were deemed unsatisfactory for other rail projects, such as HS2 and London’s Crossrail, but could be offered to the North East.

A Nexus spokesman said: “Nexus has been clear we believe direct grant funding for a new fleet provides the quickest route to procurement and delivery, as well as the best value for money for the taxpayer.

“We understand grant funding is still being considered as an option and we will continue to argue this is the best option.”