Shapps hints at nationalisation

Airlines, rail and bus companies could be temporarily nationalised to help them through the coronavirus outbreak, Grant Shapps has suggested.

The Transport Secretary told MPS good organisations “shouldn’t be going bust” as a result of problems caused by the spread of Covid-19.

He said a lot of different responses will be required, including “on occasions organisations being run by the public sector”, noting this has already happened for some rail firms but for reasons unconnected to coronavirus.

Northern was taken into public ownership earlier this month following complaints about the poor level of service.

Addressing train timetables, Mr Shapps also spoke of a desire to avoid “ghost trains” but noted it may be desirable to keep as many services running as possible to provide space for passengers to comply with social distancing requirements.

His remarks came after Labour’s Stephen Doughty, MP for Cardiff South and Penarth, highlighted Mr Shapps’s comments about supporting airlines, rail and bus firms, asking: “Does he accept that we’re going to potentially have to put some of those into national ownership, perhaps for a temporary period?”

Mr Doughty also asked for the rules to be relaxed on “bailouts” for municipal bus companies and others.

Speaking in the final day of the Budget debate, Mr Shapps replied: “The principle should, as far as we can possibly make this work, be that people and individuals and companies are left in the same position when we come out of this.

“Although I have to say, I feel we will be in a somewhat changed world, a somewhat changed environment on the other side of this, but nonetheless good organisations shouldn’t be going bust.

“It will be hugely challenging and we will require a lot of different responses and mechanisms in order to get there, including on occasions organisations being run by the public sector, which he’s already seen in the case of trains but for a completely different reason.”

On train timetables, Mr Shapps said: “It makes no sense for us to be running empty trains as fewer people will be travelling following the advice and guidance from the Government and Prime Minister last night.

“So in the short, mediumterm timetables may be altered in order to ensure we don’t effectively run ghost trains, which will make no sense.”