McDonald questions motives for franchise deal

“Is not this really payback for the East Coast collapse, two years ago?” Shadow Transport Secretary Andy McDonald asked Government in a House of Commons debate on April 11.

MPs were debating the East Midlands franchise that had been awarded the previous day to Abellio. With Government disqualifying Stagecoach from the bidding shortlist, McDonald queried if it was payback for the decision taken by Stagecoach and Virgin Group in 2017 to hand back the keys to the Virgin Trains East Coast franchise, which is currently operated by LNER.

McDonald also accused Government of changing the rules regarding pensions during the bidding process and questioned why, with the Williams Review under way, did Government announce the East Midlands deal. He also asked if Government was ready should Virgin and Stagecoach decide to take legal action.

Responding, Rail Minister Andrew Jones denied franchising was in “disarray”, adding: “The Government is completely confident that the bid was evaluated and decided fairly. It is business as usual in the awarding of a franchise on our rail network.”

Jones continued: “He [McDonald] asked whether the decision on the East Coast Main Line was payback. That question is absolute nonsense. That is an entirely separate matter. The bid was won on merit by the strongest bidder. If a company chooses to bid non-compliantly, that is its fault.”

Jones later replied to David Hanson (Labour, Delyn) about how the East Coast and West Coast franchises are linked, saying: “I am slightly puzzled by the Labour party’s position on this. After the East Coast Main Line affair last year, Labour was broadly suggesting that Stagecoach should not be allowed to bid for anything. Now it is broadly suggesting that it is bad to take away any franchises from it.”