• Privacy policy
  • T&C’s
  • FAQ
  • Meet the Team
  • About The London Economic
  • Advertise
TLE ONLINE SHOP!
NEWSLETTER
SUPPORT THE LONDON ECONOMIC
  • TLE
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Food
  • Lifestyle
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
  • TLE
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Food
  • Lifestyle
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home News

Government to take over all rail franchises for “at least” six months

TSSA welcomed the move, but said it's sad that it has taken a pandemic for the government to take control of our railways.

Jack Peat by Jack Peat
March 23, 2020
in News

Rail franchise agreements are to be suspended to avoid train companies collapsing due to the coronavirus, the Department for Transport (DfT) has announced.

Operators are being offered the chance to transfer all revenue and cost risk to the Government, and be paid a small management fee to run services.

TSSA welcomed the move, but said it’s sad that it has taken a pandemic for the government to take control of our railways.

Minimise disruption

The emergency measures will be in place for an initial period of six months.

The DfT said they will “minimise disruption to the rail sector”.

Allowing operators to enter insolvency would cause “significantly more disruption to passengers and higher costs to the taxpayer”, the department added.

The DfT said passenger numbers have fallen by up to 70 per cent, while ticket sales are down by two-thirds.

RelatedPosts

‘Donald J Trump ain’t going anywhere’ – Trump remains the dominant force at US conservative conference

Video – Fireworks fired at police as hundreds take part in anti-lockdown protest

1,000 homeless deaths last year as millions to help rough sleepers has gone unspent

Reactions as BBC apologise about misleading headline regarding Sturgeon

Rail timetables have been slashed because of Covid-19.

Anyone holding an Advance ticket will be able to get a refund free of charge, while administrative fees have been waived for season ticket refunds.

The terms and conditions of employment for rail workers will not change.

Protect key workers

Transport Secretary Grant Shapps said: “We are taking this action to protect the key workers who depend on our railways to carry on their vital roles, the hardworking commuters who have radically altered their lives to combat the spread of coronavirus, and the frontline rail staff who are keeping the country moving.

“People deserve certainty that the services they need will run or that their job is not at risk in these unprecedented times.

“We are also helping passengers get refunds on Advance tickets to ensure no-one is unfairly out of pocket for doing the right thing.

“These offers will give operators the confidence and certainty so they can play their part in the national interest.”

The department said the maximum fee given by the Government to train operators would be 2 per cent of the value of a franchise before the Covid-19 pandemic began.

It is intended to incentivise companies to meet performance targets, and will be “far less than recent profits earned by train operators”.

The DfT added that the Government-controlled Operator of Last Resort (OLR) “stands ready to step in” for operators which do not accept the emergency measures.

This would effectively mean nationalising franchises.

The OLR already runs Northern and LNER.

It’s sad that it has taken a pandemic

Commenting, TSSA General Secretary Manuel Cortes said: “We welcome this move, but it’s sad that it has taken a pandemic for the government to take control of our railways.

“I am immensely proud of the efforts of our members and all across the transport industry in keeping our network open for key workers and for moving freight around the country.

“Today is not the day to score political points, but I can only hope that at the end of the emergency period the government reflects on whether allowing private companies – predominantly the state owned railway companies of our European neighbours – to make profits at the expense of British passengers and taxpayers, should continue.”

Related: Boris Johnson faces pressure to order coronavirus lockdown as death toll rises

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Tags: headline
Support fearless, free, investigative journalism Support fearless, free, investigative journalism Support fearless, free, investigative journalism

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending fromTLE

  • All
  • trending

What If We Got Rid Of Prisons?

Stress, fear and homelessness: The threat looming over families confronted with eviction

File photo dated 07/11/03 of a prison cell.

The Other Prison Pandemic

Latest from TLE

Credit;PA

‘Donald J Trump ain’t going anywhere’ – Trump remains the dominant force at US conservative conference

thunder ball results

Thunder Ball Results, Saturday 27th February 2021

National Lottery Lotto Results – Saturday 27th February 2021

Credit;PA

Video – Fireworks fired at police as hundreds take part in anti-lockdown protest

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

Contact

Editorial enquiries, please contact: jack@thelondoneconomic.com

Commercial enquiries, please contact: advertise@thelondoneconomic.com

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Opinion
  • Business
  • Sport
  • Entertainment
  • Film
  • Lifestyle
  • Food
  • Property
  • Travel
  • Tech & Auto
  • About The London Economic
  • Meet the Team
  • Privacy policy

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.