The Transport Secretary has terminated a contract operated by Stagecoach and Virgin Trains. Chris Grayling said the route will come under Government control on 24 June and will be known as London North Eastern Railway, recreating a former brand.

 

He halted the previous franchise because the operator “got the bid wrong and they are now paying a price” of nearly £200M in meeting contracted commitments. He insisted taxpayers have not made a loss and that the East Coast route is not a failing railway line.

 

Transport Select Committee chair Lilian Greenwood MP described the intervention as “a very sorry tale” and said the Secretary of State must be held to account “not just for his policies but his implementation of them”.

 

On Monday the former Transport Secretary Lord Adonis – who took East Coast services back under public control in 2009 – told the Select Committee that the franchise “clearly has a history of over bidding, which may have something to do with the fact it is regarded as a flagship franchise and that people have always had delusions of the capacity for massive passenger growth”.

 

He added that the present Transport Secretary should have taken the decision to terminate the franchise much sooner and had this advice: “Before costing the taxpayer potentially billions of pounds in rewriting contracts and setting up new franchise systems, at least see if you can make the existing system work with the minimum changes. Only if they prove not to be feasible should you go for more radical alternatives.”

 

Leeds City Council leader Judith Blake commented: “The end of yet another private sector franchise will bring no joy to passengers or businesses in Leeds. It’s a significant setback to improvements promised at the start of the franchise. We need urgent clarification that those improvements will still be delivered under the new arrangement.”

 

But she added: “We saw between 2009 and 2015 how a publicly operated line can deliver real improvements to services and customer satisfaction.”

 

Passenger watchdog Transport Focus chief executive Anthony Smith said: “Whichever organisation runs East Coast services, under whatever new arrangements, passengers will be looking for the quality of current services to be maintained and built on.

 

“Having more stability in the underlying contract between Government and the train company will help achieve these things that matter most to passengers.”

 

♦ Network Rail has announced Andrew Haines as its new chief executive. He will replace current boss Mark Carne later this year.

 

Andrew currently heads up the Civil Aviation Authority and his first job was as a left luggage clerk at Victoria station in London.

 

Network Rail chairman Sir Peter Hendy said: “Andrew will drive delivery of the railway improvements set out in the strategic business plan for 2019/2024, ensuring Network Rail’s continuing focus on safety, performance and cost effectiveness.”

 

Photo: Aubrey Morandarte and licensed for reuse under this Creative Commons Licence