Senior civil servant sought to block Pacer replacements

The Transport Secretary had to overrule his most senior official after Whitehall tried to prevent him forcing out Pacer trains.,
Rail networks set for major delaysRail networks set for major delays
Rail networks set for major delays

Patrick McLoughlin today unveiled a Government guarantee that new bidders for Northern Rail services will only be handed the contracts if they show how they will bring in 120 new trains.

His move means an end is in sight for the unloved and outdated commuters trains which bring a miserable start to the day for thousands across the north.

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The plan though very nearly did not happen. Documents released by the Department for Transport show the Secretary of State received an official letter from Permanent Secretary Philip Rutnam telling him the move could see £250m reduced from the amount they could make from franchise bids, leaving the department with a budget black hole as they prepare for yet another tight spending review.

Mr Rutnam also sought to convince Mr McLoughlin that a simple upgrade to existing fleets could work just as well. Setting out his “reservations” about scrapping Pacers, the official said there would be “large cost to bring forward replacements to 2020 but relatively few benefits,” adding that research suggests the move is “poor value for money.”

The official, whose job comes with a salary of around £160,000, said bidders should have the flexibility to keep the trains in use, modified for disabled customers.

In a hint at why the minister might wish to avoid the Pacer demand, Mr Rutnam ends his letter making clear that a decision to go advice might draw the attention of the influential Public Accounts Committee.

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Mr McLoughin pressed ahead with the rail order, writing to his permanent secretary making clear the move will go ahead.

“I do not consider the consider that the continued use of these uncomfortable and low quality vehicles is compatible with our vision for economy growth,” he said.