Standards fear as Branson faces losing rail line

The Government is due to announce the winner of the bidding for a new West Coast franchise in the next few days.

It is thought that Sir Richard’s company Virgin Trains has lost out to FirstGroup in the battle to operate the London to Scotland line on which tilting, high-speed Pendolino trains run.

The Government announcement comes as the rail industry comes to terms with the need to comply with cost-cutting recommendations made in a Whitehall-commissioned report by Sir Roy McNulty. The RMT transport union is opposed to the McNulty measures and very concerned about the West Coast.

RMT general secretary Bob Crow said: “Whoever wins the West Coast route next week, and all the signs point to FirstGroup, they should be left in no doubt that we will mount a massive industrial, political and public campaign to stop any attacks on our members’ jobs and the services that they provide to the travelling public.

“From leaked figures it is clear that this franchise is being let on pure McNulty terms with a gold-plated, 12-year contract linked to massive cuts to jobs and passenger services and huge increases in fares as the winning bidder battles to extract every penny that they can in profit.”

Shadow Transport Secretary Maria Eagle said: “Passengers are set to lose out no matter which companies win these new longer franchises because Ministers have promised successful bidders they can hike fares, cut services and close ticket offices.

“Instead of the strict 1 per cent above inflation cap proposed by Labour, the Government has told train companies they can levy fare rises of 8 per cent above inflation in 2013 and 2014 and 6 per cent above inflation for the rest of the franchise.

“At the same time, winners will be allowed to cut rail services, introduce even more expensive ‘super peak’ tickets and close ticket offices, meaning passengers will be paying more for less. In deciding who should secure these franchises, Ministers should be asking themselves three questions on behalf of taxpayers and farepayers.

“First, how will farepayers be protected if the impending capacity crunch means unrealistic promises of revenue payments cannot be delivered through growth?

“Second, how will taxpayers be protected from the consequences of an unrealistic bid leading to a repeat of the East Coast franchise fiasco?

“Third, how have bidders treated not just the letter but the spirit of previous contracts, for example not gaming the system to evade payments to the taxpayer or imposing excessive fare rises on passengers?”