Rail company returns £209m to taxpayers

THE state-run railway company in charge of the East Coast main line has returned nearly £209m to taxpayers, even as the Government prepares to return it to private hands.

Directly Operated Railways (DOR), which took over in 2009 after National Express gave up on the London to Scotland franchise, was boosted by a 4.2pc increase in turnover from ticket sales and other income to £693.8m.

The improvement allowed it to hand back £208.7m to the Government, 6.6pc more than it did this time last year.

The strong performance is likely to raise questions about plans to reprivatise the route, with a final decision on who will operate it due this time next year, ahead of the beginning of the franchise period in February 2015.

Channel Tunnel operator Eurostar last month announced its interest to bid for the contract, in a partnership with France’s Keolis.

DOR’s annual report also revealed that chief executive Michael Holden was paid a salary of £224,800, a hefty 28pc increase on last year, when he took home £175,125.

Rail Maritime and Transport trade union boss Bob Crow said the profit figures ‘destroy from top to bottom’ the case for handing back the line to ‘rip-off merchants from the private sector’.