Transport Secretary attacked over extending Virgin ...

The Transport Secretary has actually been attacked for revealing an extended contract for Virgin Trains to run services on the West Coast Mainline.Chris Grayling told the Commons that a"direct award "was being made to Virgin to run services on the West Coast for an extra year.The franchise had been because of end in April, however the Government has previously revealed that Virgin will run services till April next year prior to a brand-new franchise was expected to be developed to run the West Coast and HS2 services when the high speed line is integrated in 2026. New row over Virgin Trains (Martin Keene/PA)Tory Iain Stewart stated the West Coast mainline was a"vital"train service for his Milton Keynes South constituency.He asked: "Might(Mr

Grayling) state a little bit more about the duration of this direct award and exactly what extra functions that my constituents can anticipate to see throughout it.Mr Grayling replied:"My expectation is this will last no greater than 2 years, potentially just one year."It's crucial to obtain the West Coast collaboration structure in place to go through the bidding procedure. We will be soon issuing the ITT.( Invite To Tender) "Awaiting parliamentary statement about next Grayling rail bailouts at 5.45 -intentionally after the markets have actually closed. Prepare for another huge row about Branson, Souter et al #giveawaygrayling-- Andrew Adonis(@Andrew_Adonis ) February 5, 2018 Mr Grayling has actually been criticised for his handling of Virgin's East Coast franchise, which is ending in 2020, 3 years early.The National Audit Office has actually announced

it will examine the Federal government's handling of the franchise, which is a joint venture in between Virgin and Stagecoach.Ministers have said any idea taxpayers would run out pocket was wrong.Mick Whelan, leader of the train motorists'union Aslef, said:" It is outrageous that Virgin Trains has actually been handed a financially rewarding new agreement to run services on the west coast main line regardless of major criticism of its owners'handling of the east coast franchise. "And it is outrageous that this government-- dedicated, as

it states it is, to free and fair competition-- doesn't go through a proper tendering procedure but merely hands out an agreement extension to its chums."Not surprising that Richard Branson is smiling. He's got this government where he desires it. He deals with Chris Grayling as his little animal small dog. Why keep a dog and bring the stick yourself? Branson and Virgin have Chris Grayling and the DfT to fetch it for them.Lord Adonis, who stepped down last year as chairman of the National Facilities Commission, tweeted:"Awaiting parliamentary statement about next Grayling rail bailouts at 5.45-- intentionally after the marketplaces have closed. Prepare for another big

row about Branson, Souter et al. "Mr Grayling told MPs that Stagecoach had"got its sums incorrect "over the East Coast franchise, was set to lose practically ₤ 200 million and would only be allowed to run the service on a not-for-profit, short-term basis.Mr Grayling informed MPs that the East Coast franchise had "breached an essential monetary covenant." The choices were for Stagecoach to continue running services on a short-term, not-for-profit basis, or for the line to be directly operated by the Department for Transport through an"operator of last resort."The minister stated that having actually formerly announced that the franchise will run out of money and not last up until 2020, the situation was now "much more immediate."He said:"It is now clear that this franchise will just be able to continue in its current form for a matter of

an extremely little number of months and no more. "It's essential to be clear with your house,

this will not impact on the railway's everyday operations. Business will continue to operate as normal with no effect on services or personnel on the East Coast. "But it does indicate I will require to-- in the very future-- end the contract and put in location a successor arrangement to operate this railway." Provided the impending financial pressure the existing franchise is under, I am doing something about it now to secure travelers who depend upon these train services and guarantee ongoing worth for money for taxpayers."Contrary to widespread speculation,

no deal has actually been done and I have not yet made a decision on the successor operator to run the East Coast railway until the long-term prepare for the integration of track and train can begin in 2020." There is no question of anyone receiving

a bailout. Stagecoach will be held to all of its contractual commitments completely. "To anybody who believes that the almost ₤ 200 million that Stagecoach will lose is insignificant, let me put it into some context."The combined revenue of every single train operator in the nation was only ₤ 271 million last year."The loss relates to over 20% of Stagecoach's overall market worth.

it is a substantial quantity of cash by any measure, and it must likewise act as a stark warning to any company lured to over-bid in future."The top priority now is to make sure the continued smooth running of the East Coast franchise for its travelers.

"I have therefore asked my officials to conduct a full appraisal of the choices available to the Federal government to ensure connection of service up until we implement the East Coast Collaboration on the route from 2020."Mick Money, leader of the Rail, Maritime and Transportation union, said:"This disgraceful fiasco on one of Britain's primary rail routes needs to end and it requires to end now."RMT alerted that taking the East Coast lines out of the hands of the effective p ublic sector operation and handing them back to the personal speculators and spivs was a disaster in the making and we have actually been proved right.

"East Coast ought to be renationalised with immediate effect and the scale of the scandal revealed today must mark the point at which the entire rotten service of rail privatisation in Britain was called to a stop."RMT is requiring instant assurances that the countless rail employees caught in the crossfire of this turmoil will have their jobs and working conditions fully secured and underwritten. "Chris Grayling and the Tory Federal government have turned transportation in Britain, the country that gave the railways

to the world, into a worldwide laughing stock."He is a specialist in failure of the highest order and must resign."Mr Grayling likewise announced that Abellio, Arriva, Stagecoach (the existing incumbent)and a joint venture in between First and Trenitalia have actually been shortlisted to run the East Midlands franchise." As I have formerly stated, the Federal government has no sufficient legal premises to limit Stagecoach from bidding." But the competitors will be run on a fair, transparent basis, consisting of new safeguards against overbidding. Ultimately, the winner will be the company that offers the best service to passengers and finest value to the taxpayer,"he said.Shadow transportation secretary Andy McDonald said:"That Chris Grayling granted a lucrative contract to Virgin and Stagecoach on the West Coast while concurrently validating the same companies have actually collapsed on the East Coast reveals Government policy remains in chaos. "This is yet another Tory handout to personal investors at the public's cost."Stopping working train companies must not be awarded future contracts, however this Federal government is rewarding them for failure by extending their rewarding deal." The Transport Secretary's failure to withstand Virgin and Stagecoach is a disgrace. He's expected to safeguard taxpayers'interests, not compromise them to personal shareholders. "The system is broken which is why Labour will act in the general public interest by taking our railways back into public ownership."Anthony Smith, Transportation Focus primary executive, said:"Passengers'main concerns will be that the services that they rely on will continue to run and that quality is not compromised in any short-term arrangements that are put in location."We anticipate a transparent technique when any decisions are made. On the West Coast and East Midlands, we will be working with all bidders for future contracts to ensure that guests'expectations are met."

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