Roland JACKSON -
Britain’s privatised railway sector that drove the Industrial Revolution and was rescued by the state in March owing to coronavirus-ravaged demand, faces a major overhaul under government plans unveiled on Monday.
While UK train services will continue to be run mainly by private companies, the franchising system will be replaced by Emergency Recovery Management Agreements (ERMA) as the virus derails demand, the government said.
The Department for Transport said it would continue to cover losses suffered by private rail operators over the next 18 months, extending a system begun following the start of the virus outbreak in Britain.
“Ministers today ended rail franchising after 24 years as the first step in bringing Britain’s fragmented network back together,” the DfT said in a statement.
“The new system will create a simpler, more effective structure and will take shape over the coming months.”
The franchising system has been long-criticised by passenger groups, who accuse private companies of charging excessive fares for regularly-delayed train services despite earning large state-subsidies.
Despite long-standing government help, the taxpayer has in recent years been forced to take over several franchises that ran into financial trouble, such as Northern Trains and London North Eastern Railway.
With COVID-19 decimating passenger demand, Prime Minister Boris Johnson’s Conservative government has already paid out a reported £3.5 billion ($4.5 billion) to support private rail operators.
Transport Secretary Grant Shapps indicated on Monday that the privatised rail model was not working in the current climate, as many commuters choose to work at home and travellers cancel their plans. “The model of privatisation adopted 25 years ago has seen significant rises in passenger numbers, but this pandemic has proven that it is no longer working,” Shapps said. — AFP
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