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| West coast mainline rail franchise cancellation: reaction in full | West coast mainline rail franchise cancellation: reaction in full |
| (6 months later) | |
| Transport secretary Patrick McLoughlin | Transport secretary Patrick McLoughlin |
| I have had to cancel the competition for the running of the west coast franchise because of deeply regrettable and completely unacceptable mistakes made by my department in the way it managed the process. | I have had to cancel the competition for the running of the west coast franchise because of deeply regrettable and completely unacceptable mistakes made by my department in the way it managed the process. |
| A detailed examination by my officials into what happened has revealed these flaws and means it is no longer possible to award a new franchise on the basis of the competition that was held. | A detailed examination by my officials into what happened has revealed these flaws and means it is no longer possible to award a new franchise on the basis of the competition that was held. |
| I have ordered two independent reviews to look urgently and thoroughly into the matter so that we know what exactly happened and how we can make sure our rail franchise programme is fit for purpose. | I have ordered two independent reviews to look urgently and thoroughly into the matter so that we know what exactly happened and how we can make sure our rail franchise programme is fit for purpose. |
| West coast passengers can rest assured that while we seek urgently to resolve the future arrangements the trains that run now will continue to run, with the same drivers, the same staff and timetables as planned. The tickets that people have booked will continue to be valid and passengers will be able to make their journeys as planned. | West coast passengers can rest assured that while we seek urgently to resolve the future arrangements the trains that run now will continue to run, with the same drivers, the same staff and timetables as planned. The tickets that people have booked will continue to be valid and passengers will be able to make their journeys as planned. |
| Department for Transport permanent secretary Philip Rutnam | Department for Transport permanent secretary Philip Rutnam |
| The errors exposed by our investigation are deeply concerning. They show a lack of good process and a lack of proper quality assurance. I am determined to identify exactly what went wrong and why, and to put these things right so that we never find ourselves in this position again. | The errors exposed by our investigation are deeply concerning. They show a lack of good process and a lack of proper quality assurance. I am determined to identify exactly what went wrong and why, and to put these things right so that we never find ourselves in this position again. |
| FirstGroup | FirstGroup |
| We were notified late on Tuesday night that the DfT has apparently discovered significant technical flaws in the way its franchise process for the InterCity west coast was conducted and has consequently cancelled the competition for this franchise. We understand the DfT has ordered two urgent independent inquiries into the west coast competition and the wider DfT rail franchise programme. | We were notified late on Tuesday night that the DfT has apparently discovered significant technical flaws in the way its franchise process for the InterCity west coast was conducted and has consequently cancelled the competition for this franchise. We understand the DfT has ordered two urgent independent inquiries into the west coast competition and the wider DfT rail franchise programme. |
| Until this point we had absolutely no indication that there were any issues with the franchise letting process and had received assurances from the DfT that its processes were robust and that it expected to sign the contract with FirstGroup soon. | Until this point we had absolutely no indication that there were any issues with the franchise letting process and had received assurances from the DfT that its processes were robust and that it expected to sign the contract with FirstGroup soon. |
| We are extremely disappointed to learn this news and await the outcome of the DfT's inquiries. | We are extremely disappointed to learn this news and await the outcome of the DfT's inquiries. |
| The DfT has made it clear to us that we are in no way at fault, having followed the due process correctly. We submitted a strong bid, in good faith and in strict accordance with the DfT's terms. Our bid would have delivered a better deal for west coast passengers, the taxpayer and an appropriate return for shareholders." | The DfT has made it clear to us that we are in no way at fault, having followed the due process correctly. We submitted a strong bid, in good faith and in strict accordance with the DfT's terms. Our bid would have delivered a better deal for west coast passengers, the taxpayer and an appropriate return for shareholders." |
| Virgin Trains owner Sir Richard Branson | Virgin Trains owner Sir Richard Branson |
| From the moment we found out that FirstGroup had been made the preferred bidder with a completely unrealistic bid, we questioned the way the offers had been assessed, and asked government to review and explain how it came to its decision. | From the moment we found out that FirstGroup had been made the preferred bidder with a completely unrealistic bid, we questioned the way the offers had been assessed, and asked government to review and explain how it came to its decision. |
| We were convinced the process was flawed but despite our best efforts we were met with silence by the DfT. We also asked for government to appoint an independent adviser to look at the situation, which was turned down. Reluctantly we were forced to seek a judicial review. On Thursday, the DfT were meant to have given their evidence to the court. | We were convinced the process was flawed but despite our best efforts we were met with silence by the DfT. We also asked for government to appoint an independent adviser to look at the situation, which was turned down. Reluctantly we were forced to seek a judicial review. On Thursday, the DfT were meant to have given their evidence to the court. |
| I am pleased to say that the DfT has looked at all of the facts and found significant flaws in the way its officials handled the process. They have basically acknowledged that what we had been saying is correct. The same procedures were not followed and "deeply regrettable and completely unacceptable mistakes" were made by the department. | I am pleased to say that the DfT has looked at all of the facts and found significant flaws in the way its officials handled the process. They have basically acknowledged that what we had been saying is correct. The same procedures were not followed and "deeply regrettable and completely unacceptable mistakes" were made by the department. |
| Shadow transport secretary Maria Eagle | Shadow transport secretary Maria Eagle |
| The west coast rail franchise fiasco has yet again exposed the shambolic incompetence of this Tory-led government. Ministers have spent weeks refusing to listen to Labour's call to suspend the award of this contract to enable an independent review to take place. Only last week the transport secretary repeated his claim that the process was conducted properly and he would hand over the franchise to First on time, despite all the concerns that had been raised. The government's belated admission that it ran a flawed tendering process will come as a surprise to no one. | The west coast rail franchise fiasco has yet again exposed the shambolic incompetence of this Tory-led government. Ministers have spent weeks refusing to listen to Labour's call to suspend the award of this contract to enable an independent review to take place. Only last week the transport secretary repeated his claim that the process was conducted properly and he would hand over the franchise to First on time, despite all the concerns that had been raised. The government's belated admission that it ran a flawed tendering process will come as a surprise to no one. |
| The transport secretary must now reveal the full details of what went wrong and come clean on the full cost to taxpayers of this shambles. It will be appalling if ministerial incompetence has left the government open to legal challenge for which taxpayers will pick up the bill. Passengers and staff deserve immediate reassurance about the future of the west coast service. If the government now transfers the running of this line to its own not for private profit rail company, as seems sensible and likely, then Labour will support that decision. Ministers must also now abandon the planned privatisation of the east coast line. | The transport secretary must now reveal the full details of what went wrong and come clean on the full cost to taxpayers of this shambles. It will be appalling if ministerial incompetence has left the government open to legal challenge for which taxpayers will pick up the bill. Passengers and staff deserve immediate reassurance about the future of the west coast service. If the government now transfers the running of this line to its own not for private profit rail company, as seems sensible and likely, then Labour will support that decision. Ministers must also now abandon the planned privatisation of the east coast line. |
| Michael Roberts, Association of Train Operating Companies chief | Michael Roberts, Association of Train Operating Companies chief |
| The discovery of significant flaws in the DfT's franchising process is a cause of great concern. It is in the interests of passengers, taxpayers and the rail industry that the DfT solves these problems as a matter of urgency. Franchising private companies to run train services has delivered for the country, with rail travel more popular now than at any time since the 1920s and near record levels of satisfaction and punctuality. The cancellation, however, of the InterCity west coast franchise allows the DfT to reappraise its approach to franchising and implement rapid improvements. The two independent reviews will need to restore the confidence of taxpayers and passengers, and those who might want to bid for franchises in the future. We look forward in particular to engaging with the review into the wider rail franchising programme. | The discovery of significant flaws in the DfT's franchising process is a cause of great concern. It is in the interests of passengers, taxpayers and the rail industry that the DfT solves these problems as a matter of urgency. Franchising private companies to run train services has delivered for the country, with rail travel more popular now than at any time since the 1920s and near record levels of satisfaction and punctuality. The cancellation, however, of the InterCity west coast franchise allows the DfT to reappraise its approach to franchising and implement rapid improvements. The two independent reviews will need to restore the confidence of taxpayers and passengers, and those who might want to bid for franchises in the future. We look forward in particular to engaging with the review into the wider rail franchising programme. |
| RMT general secretary Bob Crow | RMT general secretary Bob Crow |
| The whole sorry and expensive shambles of rail privatisation has been dragged into the spotlight and instead of re-running this expensive circus, the west coast route should be renationalised on a permanent basis. Those ministers who have presided over this fiasco should also be called to account – £60m that could have been invested in services will be blown on reimbursing the bidders as the government admit they cannot add up. With a mass of other franchises coming up over the next few years the whole process has to be called to a halt with Directly Operated Railways given a long-term opportunity to sweep up this mess just as they have successfully done on the east coast. | The whole sorry and expensive shambles of rail privatisation has been dragged into the spotlight and instead of re-running this expensive circus, the west coast route should be renationalised on a permanent basis. Those ministers who have presided over this fiasco should also be called to account – £60m that could have been invested in services will be blown on reimbursing the bidders as the government admit they cannot add up. With a mass of other franchises coming up over the next few years the whole process has to be called to a halt with Directly Operated Railways given a long-term opportunity to sweep up this mess just as they have successfully done on the east coast. |
| "You can bet your life that the same basic mistakes made by the government and its officials on the west coast tender have been made on other franchises as the private sector lie through their teeth with the sole intention of robbing us blind. It is no surprise that 70% now support rail renationalisation and that public opinion will harden after today's humiliation of the government. | "You can bet your life that the same basic mistakes made by the government and its officials on the west coast tender have been made on other franchises as the private sector lie through their teeth with the sole intention of robbing us blind. It is no surprise that 70% now support rail renationalisation and that public opinion will harden after today's humiliation of the government. |
| Richard Hebditch of the Campaign for Better Transport | Richard Hebditch of the Campaign for Better Transport |
| This extraordinary announcement highlights the weaknesses in the franchise process. It's a process that puts finance first rather than passengers, but now it seems we can't even rely on the numbers for that. The government's review of franchises must now be used to look at how we can get rail services that meet passengers' needs and grow and improve our railway. | This extraordinary announcement highlights the weaknesses in the franchise process. It's a process that puts finance first rather than passengers, but now it seems we can't even rely on the numbers for that. The government's review of franchises must now be used to look at how we can get rail services that meet passengers' needs and grow and improve our railway. |
| Simon Walker, director general of the Institute of Directors | Simon Walker, director general of the Institute of Directors |
| It is shocking that such a crucially important process has gone so seriously wrong. Businesses need a stable, reliable rail network and certainty in the provision of key infrastructure. Government tendering processes must be whiter than white, or firms will be deterred from applying to take contracts on, which will harm service delivery. | It is shocking that such a crucially important process has gone so seriously wrong. Businesses need a stable, reliable rail network and certainty in the provision of key infrastructure. Government tendering processes must be whiter than white, or firms will be deterred from applying to take contracts on, which will harm service delivery. |
| Adam Marshall, director of policy at the BCC | Adam Marshall, director of policy at the BCC |
| The west coast mainline is one of Britain's most important business corridors, and companies in cities up and down the country will be concerned that this situation could affect both current services and future investment in critical passenger services. When this government arrived in office, it promised longer and more stable rail franchises that would deliver value for money and improved services to users and taxpayers. Ministers must now act swiftly to ensure that investment in the railway network, which underpins investment in our cities and towns, does not suffer as a result of their decision to re-run the competition for this crucial franchise. | The west coast mainline is one of Britain's most important business corridors, and companies in cities up and down the country will be concerned that this situation could affect both current services and future investment in critical passenger services. When this government arrived in office, it promised longer and more stable rail franchises that would deliver value for money and improved services to users and taxpayers. Ministers must now act swiftly to ensure that investment in the railway network, which underpins investment in our cities and towns, does not suffer as a result of their decision to re-run the competition for this crucial franchise. |
| More broadly, mistakes in rail franchising are indicative of a bigger problem across Whitehall, which has bungled major procurements for years. Procurement mistakes and problems increase risk for companies, threaten jobs, and harm Britain's reputation as a destination for inward investment. Britain needs procurement professionals across government with the same level of skill and ability as their counterparts in the private sector. | More broadly, mistakes in rail franchising are indicative of a bigger problem across Whitehall, which has bungled major procurements for years. Procurement mistakes and problems increase risk for companies, threaten jobs, and harm Britain's reputation as a destination for inward investment. Britain needs procurement professionals across government with the same level of skill and ability as their counterparts in the private sector. |
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