National Express 'hands keys back' to government

[sibodkent]

news.bbc.co.uk/1/hi/business/8127851.stm

So their loss making franchise was untenable, and the government has been forced to take the route into public ownership, just 2 years after NE took the contract from GNER in 2007.

The government still intends to open it to tender later this year.

I darned well hope they dont get any bidders.

Frankly now is the time to start re-nationalising these routes, have a single, integrated railway network.

I overheard a SET employee yesterday telling a passenger that 'he ought to check other train companies' restrictions on travel on that ticket' for a connecting service out of StP.

Why cant I buy a ticket that allows me to travel accross the entire british network with the same rules, regardless of where I alight from?

When SET realise they are running the HS1 service at a loss and have stupidly overcrownded classic services, perhaps they'll hand the keys back too?

It's another example of pigheaded government officials that push Private Finance initiativesints into being only to watch them fail.

FIrst Connex, then the london underground PPP, now this. Frankly ludicrous.

[greenicing]

Taken from Robert Peston's blog:

'I have learned that last night Lord Adonis rejected an offer by National Express to pay "well over £100m" to terminate the east coast franchise on a consensual basis.

This termination agreement was negotiated between National Express and Department for Transport officials and was "ready to sign", according to a source.

However Lord Adonis, the transport secretary, refused to sign as a matter of principle, in that he does not want to be seen to be renegotiating the terms of rail franchise agreements.

What this means is that the government may instead receive no more than £72m from National Express, which - as I explained earlier - is the financial guarantee provided by National Express to the special purpose vehicle that holds the franchise.

Some will wonder why Lord Adonis has apparently reduced the potential compensation for taxpayers from the termination of this important rail deal. '

It wouldn't be that much of a surprise if true as stated - I've not heard a single word of sense from Lord Adonis yet.

[ddddyyyy]

I agree with sibodkent


I have modified this posting to remove the advert links. They were not messsage board subject related and may give offence to some people.

O.V.S.