by Rene Lavanchy
Private train operators are set to come under new scrutiny over how they invest in the rail network after MPs criticised the rail franchising system and the profits they make from it.
The House of Commons Transport Select Committee this week announced a new enquiry into investment in the rail network. Committee chair Louise Ellman told Tribune that MPs intend to look at the £900 million-plus of subsidy paid out to train operating companies every year. “We’re looking at capital investment and all types of investment,” she said.
The announcement came as the transport committee published a report criticising franchises as too generous to train operators. “There is no point in involving the private sector if it simply takes the profits in the good times, leaving the taxpayer to pick up the tab in bad times”, the MPs said.
The committee is calling on the Government to keep the east coast main line in public ownership to compare its costs and service with the private sector. Transport Secretary Lord Adonis announced this month that the Department for Transport would take over the line after operator National Express said it could not meet its franchise payments, but is expected to re-let the contract next year.
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