West Coast fiasco questions more than just the franchise system

Three suspended officials, a bill for around £40 million and an uncertain future for the West Coast Mainline has raised serious doubts about the UK’s already highly-debated franchise system. But by admitting to “significant technical flaws” in handling bids for the West Coast how many more awkward questions has the government let itself in for.

More than a thousand people have so far voted in a Rail.co poll asking whether or not ministers should investigate the decision to award Siemens the Thameslink rolling stock contract on the back of the West Coast error.

Unsurprisingly 93 per cent have said yes.

Change Thameslink to HS2 and the result would likely be identical. In response to the announcement yesterday, the Stop HS2 campaign group have argued that the same “flawed methodologies” used for the West Coast decision have been used to inflate predicted passenger figures for high-speed rail.

Bottom line is: If they got the figures wrong with FirstGroup and Virgin what confidence can we have that any recent decision has been properly calculated to benefit taxpayers?

The initial focus, however, remains on the need for an immediate reform to the franchise system.

TUC General Secretary Designate, and chair of Action for Rail, Frances O’Grady said: “It is essential that ministers learn the lessons from this debacle and look at the successful blueprint provided by the East Coast mainline which is making profits that are being reinvested back into services for passengers. It is essential that any plans to re-privatise this route are now abandoned and the West Coast mainline is also taken back into public ownership.

“Instead of encouraging unsustainable bids that are not in the interests of passengers and taxpayers the government needs to realise the value of state-run services.”

Michael Roberts, chief executive of the Association of Train Operating Companies (ATOC), believes that the cancellation of the West Coast franchise will allow the DfT to sit down and re-think how it awards franchises in the future: “The two independent reviews will need to restore the confidence of taxpayers and passengers, and those who might want to bid for franchises in the future.”