ROBINSON wrote:Jesus H.
There is absolutely NO POINT WHATSOEVER to the DRO running the West Coast line. The simple reason is - DRO took over East Coast because the franchisee went bust, after taking over from Virgin, who ran it well and produced good figures.
Incidentally does anyone have any figures as how DRO are performing on the East Coast? Financially as well as time-wise and service quality wise?
Why the DRO was brought in doesn't matter (other than it points to a flawed franchising processes) . What matters is, it is cheaper to have DRO running it than a private company. The DRO gets 0.5p a mile tax payer funded subsidy per passenger on the east coast, Virgin gets 3.6p on the west coast. Do you want to pay more tax?
Quote:The VITAL difference is that Virgin have a good track record ('scuse the pun). They're largely on time, their trains are great, they've reduced travel times, they've introduced new rolling stock, they're not overly dear, they make a profit, and - this is the biggie - customers LIKE THEM. There is no reason whatsoever to remove them in favour of a government department, and had their East Coast franchise not been transferred, then the state would not NEED to run the East Coast line in the absence of anyone else to do it. Virgin would still be on it, everyone bar the 'Nationalise Everything Brigade' would he happy, and this debate wouldn't be happening.
The vital difference is the cost to the tax payer. If the government can save a substantial amount of cash by having DRO run the route it has not got to let ideology get in the way. What you rather happen? Virgin run the line requiring a much higher level of subsidy?
By the way Branson is quoted by his biographer as saying rail franchises are a license to print money and Virgin are at the forefront of tax avoidance like Vodafone and Amazon. You couldn't really make it up. We give him tax payers money to run the railways and his companies avoid paying tax the UK on their profits.
And it IS going to cost a fortune to sort the mess out and have private companies continue to run franchises up for renewal (Great Western is up in 2013 as well) because they can't just let the incumbents run them in the interim while they try and sort it all out because it is illegal to do so!