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Rail franchising system 'not fit for purpose', MPs warn Rail franchising system 'not fit for purpose', MPs warn
(about 11 hours later)
The UK's rail franchising model is "no longer fit for purpose" and is failing passengers, MPs have warned.The UK's rail franchising model is "no longer fit for purpose" and is failing passengers, MPs have warned.
The Transport Committee said operators were restricted in how much they could improve services and efficiency, and the relationship with Network Rail was "not as co-ordinated as it should be". The Transport Committee said there were "serious deficiencies" in the way the Department for Transport awarded contracts, leading to higher fares and poor performance.
The MPs urged ministers to launch an independent review of rail franchising. The MPs urged ministers to launch an independent review of the system.
The Department for Transport said new ways of working and more investment were needed to tackle challenges ahead. Transport Secretary Chris Grayling said the committee had made some "sensible recommendations".
'Continued underperformance' He said the main problem was that the rail network was "bursting at the seams".
The MPs' report said that while there could be no "single template" for franchises, there was "merit" in obtaining longer agreements covering smaller areas. The MPs' report said the current model of awarding franchises to companies to run services in different parts of the country had enabled the rise in passenger numbers.
But they said it had not increased competition in the way the government had hoped in the 1990s.
"Many metrics of performance are plateauing and the passenger is not receiving value for money," the report said.
How the system works
The committee said while there could be no "single template" for franchises, there was "merit" in obtaining longer agreements covering smaller areas.
The opportunity of smaller franchises with less financial risk could lead to new companies appearing on the market, the MPs said.The opportunity of smaller franchises with less financial risk could lead to new companies appearing on the market, the MPs said.
The report comes after the Association of British Commuters applied for a judicial review into the government's handling of the Southern rail crisis. Their report comes after the Association of British Commuters applied for a judicial review into the government's handling of the Southern rail crisis.
The group says ministers have acted unlawfully by failing to determine whether managers have breached franchise obligations.The group says ministers have acted unlawfully by failing to determine whether managers have breached franchise obligations.
Transport Committee chairman Louise Ellman said: "While franchising enabled passenger growth and service improvements when it was first rolled out, passenger satisfaction with the railways is falling.Transport Committee chairman Louise Ellman said: "While franchising enabled passenger growth and service improvements when it was first rolled out, passenger satisfaction with the railways is falling.
"Its core objectives are no longer being met, potential benefits are being lost and the passenger is suffering through higher fares and continued underperformance.""Its core objectives are no longer being met, potential benefits are being lost and the passenger is suffering through higher fares and continued underperformance."
In January the cost of a rail ticket rose on average by 2.3%, prompting protests at railway stations across the UK.In January the cost of a rail ticket rose on average by 2.3%, prompting protests at railway stations across the UK.
Ms Ellman told BBC Breakfast the DfT was too soft on train companies that broke promises on performance.
"And if the department can't do that, perhaps somebody else should be looking at it to enforce the promises that the train companies make when they take over running the service," she said.
'Better collaboration''Better collaboration'
The MPs suggested that a complete restructuring of the system would be "prohibitively impractical", but it recommended that as contracts expired the DfT might consider whether they be modified to "align better with the specific market they serve".The MPs suggested that a complete restructuring of the system would be "prohibitively impractical", but it recommended that as contracts expired the DfT might consider whether they be modified to "align better with the specific market they serve".
Labour, which wants to bring the railways back under public ownership, said the network was "fragmented and inefficient".
Shadow transport secretary Andy McDonald said: "A railway works best as an integrated network but privatisation and franchising have meant breaking it up."
The DfT said £40bn was being invested to upgrade the railways and that the franchising system had helped to create one of the safest and fastest growing networks in Europe.The DfT said £40bn was being invested to upgrade the railways and that the franchising system had helped to create one of the safest and fastest growing networks in Europe.
A spokesman said: "We can make improvements and the transport secretary has been clear that it will take new ways of working, more investment and better collaboration across the industry to tackle the challenges ahead."A spokesman said: "We can make improvements and the transport secretary has been clear that it will take new ways of working, more investment and better collaboration across the industry to tackle the challenges ahead."