Hull route returns to private sector

Published: Monday 2nd March 2015 by The News Editor

Comments (3)

A rail route which covers Hull is back in private hands.

On Sunday March 1, Virgin Trains East Coast took out of state hands the London-to-Scotland East Coast line, which includes stations in Brough and Hull.

Stagecoach and Virgin will jointly operate the route. It has remained state-controlled since 2009 by a Government-run firm.

Passengers will get the best possible deal out of the switch, according to ministers.

But Labour says passengers, staff and taxpayers would all suffer from this “hammer blow”. Michael Dugher, the shadow secretary for transport, claims that the publicly-run service had swelled the Treasury’s coffers by more than £1 billion, as well as achieving record customer satisfaction rates.

The Government said that taking the route out of state control would take rail investment and innovation to new levels.

The 2009 Labour-run administration took charge of the route’s management after National Express, the line’s franchise holder, pulled out. Prime Minister David Cameron’s government has made no secret that it always wanted the line to return into private ownership.

Copyright Press Association 2015

Published: Monday 2nd March 2015 by The News Editor

Comments (3)
  • Thomas Arthur Holland

    WHEN THE GOVERNMENT PRIVATISED THE RAIL NETWORK FOR ITS OWN BENIFIT it did so tell the general public it would not get any monies from the tax payers it lied as it still gets monies from governmet,most of the shares are owned by ministers in this government,and in The labour and liberal so when they vote on rail policies they are breakingtheir own laws one especially the law on voting called conflict of interest ,,,,SO now watch prices go up in leaps and bounds to fund stupid projects for its virgin owner so he can buy more balloons , while you could end up walking to work as before long you will not be able to afford the fares either that or go without other comforts its a policy or policies based on GREED……GOD help you if you vote GREEN as they want to put up taxes to squeeze you dry.

  • What can you think of that has improved as a result of going privately owned, I’m waiting tick tock tick tock———–
    Yes OK then absolutely nothing, a big fat zilch, bugger all and nouwt.
    Don’t you see that the only people who truly believe in denationalising are those who invest in the railways, because they are the ones who make a profit out of them, and in truth they do not rely on the railways to get them from A to B any way.
    They drive Rolls Royces, Daimlers and Jaguars so clearly if they have to use the railways (first class of course) they can easily afford to.
    Why do you think that London trains are better than Hull trains, newer and much more modern.
    Well aren’t London trains busier and therefore making the investor more profit, so they buy newer and better trains assisted by government to help increase that profit margin.
    Does privatisation make sense now for the working people of the UK???????

  • JB

    The Government clearly doesn’t want responsibility for running the railways, despite the fact that nationalised East Coast trains provided a very comfortable, punctual & profitable service for many years. Some franchisees under-estimate their likely ongoing business costs (Circle Health recently withdrawing from NHS care contracts, for example) and the whole thing collapses and has to start all over again (with the assistance of tax-payers money). Not sure what will happen in this instance but as other messages have stated, big groups like Virgin, with multiple diverse businesses under one umbrella, should not be permitted to divert profits from one sector of their organisation into another. The cash-cow (n this instance the railway) is often left deliberately under-funded because directors know it will always generate income due to demand, despite how appalling the actual service delivery might be. Since this is a joint venture between Stagecoach and Virgin, it is equally likely that both companies will seek to maximise the profit from their investment.

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