Main rail lines ‘better off run by state’, Conference hears

BOTH the East and West Coast main lines would be better off as state-run railways than in the hands of private operators such as Virgin and First Group, the Shadow Transport Secretary has said.
By The Newsroom
Published 2nd Oct 2012, 10:02 BST

In her strongest hint so far that Labour would like to return key rail routes back to the public sector, Maria Eagle told her party conference she would support the Government if it decided to take the West Coast line into public hands following Virgin’s High Court bid to block the award of a new 15-year contract to First Group. The East Coast line has been in public hands since former operator GNER pulled out in 2009, but the coalition Government intends to re-let the contract to a new private firm next year. But Ms Eagle said the state-run service has delivered huge savings for the taxpayer and should be maintained into the future.

“What have we seen, since it is no longer run for private profit?” the East Yorkshire-born MP said. “Around £187m returned to taxpayers this year, (and) £170m the year before – profit that next year will once again be shared with shareholders. And that’s if the contract isn’t won by the German, French or Dutch state railway, who already run large parts of our rail network. Exporting profits to deliver lower fares on the continent, at the expense of passengers in Britain. So if we were in government today, we’d provide long-term certainty and stability on the East Coast line. Not privatisation for its own sake, but a real public sector comparator. And if resolving the franchise fiasco on the West Coast Main Line means the Government has to run that on the same basis? Then we will support them.”

She said the party’s ongoing transport policy review would look around the world for the best way to deliver better and cheaper railways.

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