Britain renationalises East Coast rail line

17 May, 2018, 14:51 | Author: Brenda Erickson
  • East Coast rail franchise to come under government control

Mr Grayling told the Commons: "I will terminate Virgin Trains East Coast's contract on June 24 2018".

Virgin Trains East Coast, a joint venture between Stagecoach (90%) and Virgin (10%), won the eight-year franchise to run services between London and Edinburgh in 2014.

Transport Secretary Chris Grayling told Parliament that temporary state ownership would provide the smoothest transition to a new operator.

She said: "Three times in less than a decade, the government has been forced to intervene in the East Coast rail franchise".

The government said on Wednesday it was scrapping the contract with London-listed Stagecoach STG.L five years early and would operate the line, which carries 22 million people annually, for 2-3 years before setting up a new public-private partnership.

Despite this, Grayling denied it was a "failing railway" and insisted taxpayers had not lost out, claiming "the route continues to generate substantial returns for the Government".

Calls for the East Coast Main Line to be re-nationalised have finally been met by the government after it announced the route is to be stripped from Virgin and Stagecoach.

The Rail Delivery Group, the industry body for Britain's railways that includes state-owned Network Rail, pointed out today that Virgin Trains has invested more in the two years in which it has operated the route than DOR did in its five-and-a-half years running it.

Khloe Kardashian Reveals Who In Her Family Picked True's Name
On Monday, the Keeping Up With the Kardashians star shared where she got the unusual name. "That's where your heart belongs to". Khloe made it very clear with her note that she is still in love with the 27-year-old athlete.


Despite the firms now avoiding up to £2bn in premium payments after the failure of the franchise, Grayling said "it would not be reasonable to place conditions" on Stagecoach or Virgin bidding for further rail services.

Virgin Trains East Coast (VTEC) is the third private operator to fail to complete the full length of a contract.

Stagecoach and Virgin Trains got their bid wrong and they are now paying the price.

McDonald pointed out that the government had failed to impose restrictions on what Virgin and Stagecoach could do next, calling the statement "a smokescreen to divert attention from the failings of his policy".

The government is set to renationalise the East Coast mainline, one of Britain's busiest railway lines. He reiterated that, as the proposed East Coast Partnership contractual structure evolved, the ECML infrastructure would remain in the hands of the public sector via NR.

Stagecoach Group Chief Executive Martin Griffiths said he was "surprised and disappointed": "We will work constructively with the DfT and the OLR in the weeks ahead to ensure a professional transfer to the new arrangements, supporting our employees and maintaining the same clear focus on our customers as we have over the past three years".

He added when the franchise "was run it the public sector, it returned more than £1bn to the Treasury".

Recommended:



Popular

Amazon Alexa developers get eight new voices
More recently, Amazon launched the " Remember This " feature for Alexa, essentially giving the virtual assistant a memory. Amazon has released a new developer preview that essentially lets Alexa skill developers add a new voice to their skills.

David Moyes Leaves West Ham
Moyes said: "I could have joined a Premier League club during the season here, when I was West Ham manager". Now the marketing campaign is full, we really feel that it's proper to maneuver in a special path'.

Total halts $2 billion gas project in Iran
Joe Kaeser, the CEO of Germany's Siemens ( SIEGn.DE ), told CNN his company would not be able to do any new business with Tehran. In a deal first signed in late 2016, Total agreed to operate the South Pars project with a stake of 50.1%.

Senate panel releases documents from probe into Trump Tower meeting
Transcripts released Wednesday detail an interview the president's eldest son gave to the Senate Judiciary Committee past year . They show that Trump Jr. says he doesn't remember ever discussing the Russian Federation investigation at all with his father.

Children said they had punctures, burns
Officers responded to the home and discovered the apparent abuse when the children's mother, Ina Rogers, called 911 on March 31. She said the "squalor" officers saw while investigating came from her tearing her house apart as she searched for her child.

Mom stabbed daughter, abducted 7-year-old
They fear the little girl is in serious danger, and issued an Amber Alert after the attack took place Monday night, reports KOCO. An Amber Alert says Ahmad may be driving a black Lexus RX300 SUV with paper tags, a 2011 Ford Escape or a navy blue Ford sedan.

Solo: A Star Wars Story, Soho Square, W1
It's a poignant, intriguing-enough buried subplot that I nearly wished Qi'ra were the star of her own story. Discovering how Han met Chewbacca, or why he made the famous Kessel Run, doesn't make him more interesting.

President Trump May Acknowledge Paying Off Stormy Daniels in Routine Campaign Paperwork
Last week, Avenatti released details of wire transfers to a DE company set up by Cohen shortly before the 2016 election. "Mr. Previous year it took the agency about two days to make Trump's disclosure form public after it was submitted .

Robinson Cano Suspended from 80 Games for Drug Policy Violation
Robinson Cano is out six-to-eight weeks after he was hit by a pitch throughout Sunday's recreation towards the Detroit Tigers . Cano's acceptance of the suspension is surely tied to his injury, which may keep him out for a big chunk of that 80-game ban.

Meghan Markle's father not attending royal wedding
They were what one might expect paparazzi snaps of a non-famous person would look like: mundane and, well, a little unflattering. Kensington Palace did not confirm that Mr Markle would be missing the wedding, but issued a statement asking for understanding.