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| GNER franchise loss is defended | GNER franchise loss is defended |
| (39 minutes later) | |
| The tough line taken by the government against a rail company which failed to deliver franchise commitments has been defended by a minister. | The tough line taken by the government against a rail company which failed to deliver franchise commitments has been defended by a minister. |
| GNER gave up its East Coast Mainline contract after parent company Sea Containers ran into trouble. | |
| The firm also could not meet financial pledges to the government when passenger numbers were falling. | The firm also could not meet financial pledges to the government when passenger numbers were falling. |
| Transport Minister Tom Harris told MPs on Tuesday GNER lost the franchise for not being able to fulfil its terms. | |
| Mr Harris said: "There's no need for an inquiry into why GNER lost its franchise. | Mr Harris said: "There's no need for an inquiry into why GNER lost its franchise. |
| Four contenders | Four contenders |
| "The fact that the contract was taken away from them is simply evidence that the Department for Transport will continue to take a robust view when a franchisee fails to deliver the terms and conditions that were agreed." | "The fact that the contract was taken away from them is simply evidence that the Department for Transport will continue to take a robust view when a franchisee fails to deliver the terms and conditions that were agreed." |
| As part of its franchise deal, GNER had invested £20m in its trains with refurbished carriages and new diesel engines to maintain the half-hourly service between London and Leeds. | As part of its franchise deal, GNER had invested £20m in its trains with refurbished carriages and new diesel engines to maintain the half-hourly service between London and Leeds. |
| They are now hoping to enter into a partnership agreement with the successful bidder for the full franchise but have not said whether they will provide an independent proposal. | They are now hoping to enter into a partnership agreement with the successful bidder for the full franchise but have not said whether they will provide an independent proposal. |
| The four contenders have been revealed as Arriva, First, National Express and a joint bid by Virgin and Stagecoach. | The four contenders have been revealed as Arriva, First, National Express and a joint bid by Virgin and Stagecoach. |
| The successful bidder is likely to be announced in the summer. | The successful bidder is likely to be announced in the summer. |
| GNER won a 10-year franchise in March 2005, but faced growing financial problems after the London bombings in July of that year. | GNER won a 10-year franchise in March 2005, but faced growing financial problems after the London bombings in July of that year. |
| Passenger numbers dipped, power prices rose and Network Rail's compensation payments declined. | Passenger numbers dipped, power prices rose and Network Rail's compensation payments declined. |
| This coincided with financial problems at its parent company Sea Containers. | This coincided with financial problems at its parent company Sea Containers. |
| It surrendered the franchise, as it would not have been able to meet its terms which involved paying hundreds of millions of pounds to the government. | It surrendered the franchise, as it would not have been able to meet its terms which involved paying hundreds of millions of pounds to the government. |
| It is now operating the franchise on an agreed 18-month management contract. | It is now operating the franchise on an agreed 18-month management contract. |
| The mainline from London to Scotland goes through the Home Counties, East Anglia, East Midlands and North East. | The mainline from London to Scotland goes through the Home Counties, East Anglia, East Midlands and North East. |