The RMT has demanded that the government ban First Group from bidding for Great Western and any other rail franchises after it emerged that their ‘early termination of the current contract has saved them £826 million that was due to the UK taxpayer.’
First Group have said they will not extend their First Great Western franchise contract by the optional 3 years, instead they want to negotiate a longer term and it is believed bidding will take place for this next year.
Under the terms of the existing arrangement First Group are committed to making premium payments of £1.13 billion but by bailing out now First have ‘saved themselves £826 million that was due to be handed over in the last three years of the contract.’
RMT General Secretary Bob Crow said:
“By pulling out three years early First Group have dodged over £800 million due to the UK taxpayer while soaking up £141 million in taxpayer subsidies – that’s the best part of £1 billion that it has cost the British people to underwrite this scandal.
“The idea that on the back of this billion pound rip off that the company should be allowed to put in for a new 15 year deal is simply outrageous – not only should they be banned from tendering for the Great Western route but they should be kicked off the UK’s railways full stop.
“This whole sordid saga exposes once again the scandal of rail privatisation and there are already signs that the McNulty Review, due next week, will cave in to the train operators and give them the fifteen year, gold-plated franchises that they are after.
“The ConDems seem hell bent on allowing the private companies to run riot at the taxpayers expense.
“This trade union will continue to fight for the public ownership option for our railways that frees us from the greed and exploitation of the train operators and which we know would be 30% cheaper than the nightmare of privatisation.”
Nice to see coverage of the alternative point of view, rather than the regurgitation of corporate press releases some news agencies feel pass for journalism.
I’m not a great fan of Bob Crow or the RMT but I’ve got to admit some sympathy here – the so called privatisation of BR has turned out to be a total nonsense. Firstgroup seem to have crossed the boundary that lies between sound business practice and market manipulation of dubious morality.
We are reminded of the quote now attributed to the now Baroness Vadera “Thinly capitalised equity profiteers of the worst kind”
One alternative that might be acceptable to the current government would be to pay companies a fee to run parts of the rail system.