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East Coast Mainline failed franchise

Here is the text and link to the video of my response to Chris Grayling, Secretary of State for Transport, at the dispatch box yesterday (16/5/2018) in the House of Commons.

The Tories are propping up a broken model of rail privatisation at the expense of taxpayers and passengers. Rather than sticking up for greedy train companies, Labour will take our railway back into public ownership to be run in the interests of the many, not the few.


1.08 pm


  • May I just comment on the point of order made by my right hon. Friend the Member for Newcastle upon Tyne East (Mr Brown)? I was given sight of this statement 30 minutes before I entered this House. I was not given an electronic copy, I was not allowed to take one away and, as I sit here right now, I have still not been provided with a copy of the statement. I consider this absolutely reprehensible. The Secretary of State does this every single time—relying on confidentiality and market sensitivity. Every single time he treats me, with contempt, Her Majesty’s Opposition with contempt, and the House of Commons with contempt. It is about time he changed his ways. This is a shameful practice.

    Today, the i newspaper reported that the millennial railcard announced in the 2017 Budget has been scrapped because the Treasury will not agree to fund it. In that case, why did the Chancellor announce it? This Government have nothing to offer that age group other than spin and broken promises.

    In the past year, the Transport Secretary gifted Virgin and Stagecoach a £2 billion bail-out after they had failed on the east coast main line at the same time as awarding those same companies a lucrative contract extension on the west coast main line. Yet he has the audacity to come to the Dispatch Box and say that it is not reasonable to remove or place conditions on their passport. It is absolutely ludicrous. Three times in under a decade, private companies have failed on the east coast main line. Its only successful period was from 2009 to 2015 under public ownership, when £1 billion was returned to the Treasury. It was the best-performing operator on the network before being cynically re-privatised on the eve of the 2015 general election. The then Secretary of State for Transport said:

    “I believe Stagecoach and Virgin will not only deliver for customers but also for the British taxpayer.”

    What nonsense! Report after report by the Public Accounts Committee, which described the Government’s approach as “completely inadequate”, and by the Transport Committee detail the failure of the privatised franchising system on its own terms. The Government’s incompetence has been disastrous for passengers and led to misery for millions of people.

    We have been here before many, many times, year after year. The Secretary of State and his predecessors have stood at the Dispatch Box and told the House that privatisation is being reformed. We have had reform, reform and reform. We have had bail-out after bail-out. Rail companies win; passengers and taxpayers lose. There is a definition of insanity: doing the same thing over and again and expecting different results. This is the situation we find ourselves in today. Franchising remains at the heart of the alleged partnership. No amount of tinkering can solve the failings of a broken privatised system where the public take the risk and the train companies take the profit, aided and abetted by the Transport Secretary.

    Can we really believe anything that the right hon. Gentleman says? Rail investment is promised; rail investment is cancelled. He makes claims about technology despite his civil servants telling him that it does not exist. No one takes his announcements seriously. Every announcement is a smokescreen to divert attention from the failures of his rail franchising policy. The east coast main line is but one vulnerable rail franchise. What about Northern, TransPennine, Greater Anglia and South Western? Will there be bail-outs for operators on those lines who fail to meet their targets?

    Let us be clear about the privatised public sector operator of last resort—how ridiculous is that?—on the east coast main line. These companies—multinational Canadian engineering company SNC-Lavalin, Arup, and big-four accountancy firm Ernst and Young—are not running the east coast main line for nothing. This is Conservative-style public ownership—more private profit. Only Labour’s version of public ownership will deliver what the railway needs.

    There is a clear solution to the problems on the east coast main line. It was a successful public company between 2009 and 2014, thanks to the previous Labour Government. I am just sorry that the Secretary of State will not accept the stark staringly obvious answer: an integrated railway under public ownership, run for passengers, not for profit.





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