27 August 2012
Last updated at 10:17 GMT
Labour seeks rail franchise delay
Labour urges ministers to delay signing a new contract for the
West Coast Mainline franchise until Parliament can review the £10bn deal
next week.
27 August 2012
Last updated at 06:40 GMT
FirstGroup says it will bring in key improvements for passengers but critics fear it will not be able to afford the £5.5bn it is paying for the franchise.
The Department for Transport said it had "no reason" to delay the signing.
A spokesman indicated that the agreement was set to be signed on Tuesday despite Virgin's Sir Richard Branson offering on Sunday to run the service "for free" while a review was carried out.
The spokesman said: "We note the offer that one of the bidders appears to have made via the press.
"However, the winning bidder was decided by a fair and established process and no reason has been advanced to convince DfT not to sign the agreement."
Fierce lobbying Aberdeen-based FirstGroup already operates a number of rail routes including Great Western and ScotRail.
The company, under the name First West Coast Limited, will take over the franchise from 9 December and is due to to operate the service until 2026.
The West Coast Mainline route serves 31 million passengers travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland.
The firm said it would introduce 11 new 125mph six-car electric trains on the Birmingham to Glasgow route and provide more direct services between destinations.
But BBC deputy political editor James Landale said there was a fierce lobbying campaign, in the final hours before pen is put to paper, to put the decision on hold.
More than 100,000 people have signed an online petition calling for the decision to be reconsidered.
Labour's Maria Eagle, the shadow transport secretary, is urging the government to put the contract on hold until MPs return and have a chance to consider the deal.
And Labour's Louise Ellman, who chairs the House of Commons transport committee, has written to Transport Secretary Justine Greening asking her to delay signing the contract.
'Transparency' call On Sunday, Sir Richard said that if reviewing the decision meant the December deadline had to be postponed, his company and Stagecoach would be willing to continue operating the railway lines while donating any profits to charity.
Speaking on Monday, Sir Richard told the BBC that he wanted a proper examination of the facts.
"We've asked 40 questions - not one of them have been answered. What we want is transparency.
"If the figures stack up, we'll bow out gracefully, we'll be very happy, we've got lots of other things to do, we'll move on in a month's time.
"But what should not happen is, tomorrow, the Department for Transport shouldn't rush through, get this signed and keep all these facts under cover."
Labour calls for West Coast Mainline franchise review
Virgin's Sir Richard Branson: "If I'm proven wrong, I'm very happy to bow out gracefully"
Labour is urging ministers to delay signing a new West Coast Mainline contract until Parliament returns.
The party says MPs must have the chance to consider the
decision to take the franchise from Virgin Trains and give it to
FirstGroup for the next 13 years. FirstGroup says it will bring in key improvements for passengers but critics fear it will not be able to afford the £5.5bn it is paying for the franchise.
The Department for Transport said it had "no reason" to delay the signing.
A spokesman indicated that the agreement was set to be signed on Tuesday despite Virgin's Sir Richard Branson offering on Sunday to run the service "for free" while a review was carried out.
The spokesman said: "We note the offer that one of the bidders appears to have made via the press.
"However, the winning bidder was decided by a fair and established process and no reason has been advanced to convince DfT not to sign the agreement."
Fierce lobbying Aberdeen-based FirstGroup already operates a number of rail routes including Great Western and ScotRail.
The company, under the name First West Coast Limited, will take over the franchise from 9 December and is due to to operate the service until 2026.
The West Coast Mainline route serves 31 million passengers travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland.
Continue reading the main story
“Start Quote
Richard BransonThe Department for Transport shouldn't rush through, get this signed and keep all these facts under cover”
Virgin has run the franchise since 1997, during which time passenger numbers have doubled.
FirstGroup has promised to introduce better wi-fi and food,
more frequent trains and more seats, and to cut standard fares by 15%.The firm said it would introduce 11 new 125mph six-car electric trains on the Birmingham to Glasgow route and provide more direct services between destinations.
But BBC deputy political editor James Landale said there was a fierce lobbying campaign, in the final hours before pen is put to paper, to put the decision on hold.
More than 100,000 people have signed an online petition calling for the decision to be reconsidered.
Labour's Maria Eagle, the shadow transport secretary, is urging the government to put the contract on hold until MPs return and have a chance to consider the deal.
And Labour's Louise Ellman, who chairs the House of Commons transport committee, has written to Transport Secretary Justine Greening asking her to delay signing the contract.
'Transparency' call On Sunday, Sir Richard said that if reviewing the decision meant the December deadline had to be postponed, his company and Stagecoach would be willing to continue operating the railway lines while donating any profits to charity.
Speaking on Monday, Sir Richard told the BBC that he wanted a proper examination of the facts.
"We've asked 40 questions - not one of them have been answered. What we want is transparency.
"If the figures stack up, we'll bow out gracefully, we'll be very happy, we've got lots of other things to do, we'll move on in a month's time.
"But what should not happen is, tomorrow, the Department for Transport shouldn't rush through, get this signed and keep all these facts under cover."
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