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| Version 3 | Version 4 |
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| Unions attack taxpayer subsidy to private rail operators | Unions attack taxpayer subsidy to private rail operators |
| (about 1 month later) | |
| Unions and rail campaigners are stepping up demands for an overhaul of the railway system, after figures showed the state-run east coast line is operating with a fraction of the subsidy paid to most private train companies. | Unions and rail campaigners are stepping up demands for an overhaul of the railway system, after figures showed the state-run east coast line is operating with a fraction of the subsidy paid to most private train companies. |
| The TUC-backed Action for Rail campaign said rail franchising was fundamentally unsustainable, with operators receiving subsidies far in excess of the premiums they paid to the Treasury. | The TUC-backed Action for Rail campaign said rail franchising was fundamentally unsustainable, with operators receiving subsidies far in excess of the premiums they paid to the Treasury. |
| The TUC has analysed Department for Transport figures published this week and found the companies paid a total of £1.17bn in premiums to run services in the year to April 2012 but received subsidies totalling £3.88bn – a £2.7bn net payment from the public purse. | The TUC has analysed Department for Transport figures published this week and found the companies paid a total of £1.17bn in premiums to run services in the year to April 2012 but received subsidies totalling £3.88bn – a £2.7bn net payment from the public purse. |
| The transport secretary, Patrick McLoughlin, is expected to announce on Monday whether Virgin or the state-owned Directly Operated Railways (DOR) will run the west coast mainline after 9 December, when Virgin's contract expires. | The transport secretary, Patrick McLoughlin, is expected to announce on Monday whether Virgin or the state-owned Directly Operated Railways (DOR) will run the west coast mainline after 9 December, when Virgin's contract expires. |
| The award of the west coast franchise to FirstGroup was cancelled after flaws were discovered in the selection process and it is likely to be at least 18 months before a new competition can be concluded. | The award of the west coast franchise to FirstGroup was cancelled after flaws were discovered in the selection process and it is likely to be at least 18 months before a new competition can be concluded. |
| Two investigations into the west coast fiasco and the wider issues in franchising are due to report later this year. | Two investigations into the west coast fiasco and the wider issues in franchising are due to report later this year. |
| McLoughlin has indicated his strong preference to keep the line in private hands. DOR has been running East Coast Trains on the other north-south artery after National Express lost its franchise. Virgin is seeking a contract that will keep it in the railway business while future bids play out. | McLoughlin has indicated his strong preference to keep the line in private hands. DOR has been running East Coast Trains on the other north-south artery after National Express lost its franchise. Virgin is seeking a contract that will keep it in the railway business while future bids play out. |
| However, the TUC said the taxpayer subsidy given to Virgin was seven times higher per passenger mile than given to DOR on the east coast. Virgin last year received 3.6p a passenger mile, netting £133m, even though it recorded pretax profits of £41m, of which £29m went to shareholders. East coast was given a net subsidy of 0.5p a passenger mile. | However, the TUC said the taxpayer subsidy given to Virgin was seven times higher per passenger mile than given to DOR on the east coast. Virgin last year received 3.6p a passenger mile, netting £133m, even though it recorded pretax profits of £41m, of which £29m went to shareholders. East coast was given a net subsidy of 0.5p a passenger mile. |
| A Virgin spokesman said it was "nonsense" to calculate overall subsidies by including track payments made directly to Network Rail. He said: "Virgin actually paid £160m in premium – one of the highest to government of any train operator." | A Virgin spokesman said it was "nonsense" to calculate overall subsidies by including track payments made directly to Network Rail. He said: "Virgin actually paid £160m in premium – one of the highest to government of any train operator." |
| Action for Rail is holding protests at Euston in London and other railway stations throughout the country . Frances O'Grady, the TUC general secretary-designate who chairs the campaign group, said: "These figures show the true nature of our privatised railways – a system of corporate welfare where train operators make a play of bidding for contracts knowing that their future revenue is underwritten by the taxpayer. | Action for Rail is holding protests at Euston in London and other railway stations throughout the country . Frances O'Grady, the TUC general secretary-designate who chairs the campaign group, said: "These figures show the true nature of our privatised railways – a system of corporate welfare where train operators make a play of bidding for contracts knowing that their future revenue is underwritten by the taxpayer. |
| "The franchising process is fundamentally flawed and unsustainable. Ministers must learn from the east coast mainline which has shown that public-operated railways can be more efficient and deliver better value for money." | "The franchising process is fundamentally flawed and unsustainable. Ministers must learn from the east coast mainline which has shown that public-operated railways can be more efficient and deliver better value for money." |
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