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Mps Say Rail Franchise Model No Longer Serves Its Purpose
11 - Feb - 2017

MPs Say Rail Franchise Model No Longer Serves its Purpose

 

 

A parliamentary committee report claims Britain’s rail franchise model is no longer suitable. The current model, MPs say, is burdening train passengers with high fares and poor performance.

The report from the House of Commons transport select committee says that the model doesn’t provide competition and that the government was not holding train operators to account. It noted some “serious deficiencies” in the Department for Transport (DfT) which mean the government should consider transferring some franchising powers to operators.

MPs found that there’s only so much private train operators could do to improve services and efficiency, seeing as the franchising model has several restrictions. Their relationship with Network Rail was also “not as coordinated as it should be”, which causes fares to rise and performance to deteriorate.

The report recommends that DfT commissions an independent review of rail franchising, to explore the possibility of bestowing enforcement upon the regulator, Office of Rail and Road. MPs also expressed doubt DfT will be able to let all franchises up for renewal in the next two years.

Louise Ellman, the transport select committee chair said: “They should hold the train operating companies to account. Unless that happens the taxpayer will be footing the bill and passengers will suffer.

“While franchising enabled passenger growth and service improvements when it was first rolled out, passenger satisfaction with the railways is falling. Its core objectives are no longer being met, potential benefits are being lost and the passenger is suffering through higher fares and continued underperformance.”

Following the 2012 West Coast franchising debacle which saw Virgin contest the award of the intercity train services to a rival company, franchise awards have been delayed and contracts extended or awarded to the same companies.

As a result, fewer companies have bid for franchises, while major players such as National Express have exited the market, reducing competition.

The committee report concluded that the current rail franchising model core policy objective of promotive competition is not being met.

The shadow transport secretary, Andy McDonald MP, said: “The current system is broken. It is time for our railways to be run under public ownership, in the public interest as an integrated national asset with affordable fares for all and long-term investment in the railway network.”

 

By Airport Pickups London