21.07.14
Labour promise to review ‘failed’ rail franchising system
Ed Miliband has set out Labour’s plans to review what he calls the ‘failed’ railway franchising system in the UK, and allow public sector operators to compete to run services, if his party wins the next general election.
This is a move that hasn’t been welcomed by all party delegates, many of whom were calling for a full re-nationalisation of the system. However, he also hasn’t made many friends among train operators in the private sector, who have threatened not to bid for future franchises, if his plans go ahead.
However, after negotiations at its policy forum in Milton Keynes, the leadership, unions and delegates hammered out a compromise that will put far-reaching rail reform at the heart of Labour's election manifesto.
Under the agreement, Labour will conduct a review into a franchising system which it says has let down passengers with poor value for money and some of Europe's highest fares.
Katja Hall, CBI deputy director-general, stated that the franchise system has delivered significant investment in the UK rail network and a more efficient service for passengers.
“It’s vital that we have a system that continues to drive down costs and improve performance, underpinned by a fair bidding process based on merit. Every bidder must compete on those terms,” she stated. “But let’s not forget that the bidding process costs money – up to £10m per franchise – and all bidders must foot this bill. When the current system is already delivering well for passengers, there are legitimate questions about the potential cost to taxpayers involved in Labour’s proposals.”
(Image: c. Stefan Rousseau)
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