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| You can't compare rail franchises set up on different tracks | You can't compare rail franchises set up on different tracks |
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| You are right to highlight that the east coast mainline rail franchise is the most efficiently run in terms of its reliance on taxpayer funding, but you fail to explain why (Report, 19 April). Crucially, the east coast mainline, between King's Cross and Scotland, is the only line where the franchise holder, East Coast, has to compete with non-franchised railway companies – known as open access – for passengers. | You are right to highlight that the east coast mainline rail franchise is the most efficiently run in terms of its reliance on taxpayer funding, but you fail to explain why (Report, 19 April). Crucially, the east coast mainline, between King's Cross and Scotland, is the only line where the franchise holder, East Coast, has to compete with non-franchised railway companies – known as open access – for passengers. |
| New research this month from the Centre for Policy Studies shows East Coast passenger journeys increased by 42% at those stations which enjoy rail competition, compared with 27% for those without competition; revenue increased by 57% where competition occurs, compared with 48% for those without; and, perhaps most importantly for the passenger, average fares increased by only 11% on those stations with competition, compared to 17% at those stations without. Those companies that compete with East Coast – Grand Central and First Hull Trains – have also just recorded the highest passenger satisfaction statistics of all UK train companies. | New research this month from the Centre for Policy Studies shows East Coast passenger journeys increased by 42% at those stations which enjoy rail competition, compared with 27% for those without competition; revenue increased by 57% where competition occurs, compared with 48% for those without; and, perhaps most importantly for the passenger, average fares increased by only 11% on those stations with competition, compared to 17% at those stations without. Those companies that compete with East Coast – Grand Central and First Hull Trains – have also just recorded the highest passenger satisfaction statistics of all UK train companies. |
| As a result of this competition, more passengers have been attracted to the railway and East Coast has been able to pay a year-on-year increase in its premium to government. But while there is some open access rail competition on the east coast main line, the west coast long-distance rail franchise, operated by Virgin, faces none. More rail competition is in the interests of the passenger, the taxpayer, the government and the regions. Following last year's rail franchise collapse, the government should now move to support more open access rail competition, alongside franchises, and not support a policy which risks delivering subsidy-hungry "railopolies", 20 years on since Conservative railway privatisation. Tony Lodge Research fellow, Centre for Policy Studies | As a result of this competition, more passengers have been attracted to the railway and East Coast has been able to pay a year-on-year increase in its premium to government. But while there is some open access rail competition on the east coast main line, the west coast long-distance rail franchise, operated by Virgin, faces none. More rail competition is in the interests of the passenger, the taxpayer, the government and the regions. Following last year's rail franchise collapse, the government should now move to support more open access rail competition, alongside franchises, and not support a policy which risks delivering subsidy-hungry "railopolies", 20 years on since Conservative railway privatisation. Tony Lodge Research fellow, Centre for Policy Studies |
| • Comparing the finances of different rail franchises is a minefield and needs to beware of drawing the wrong conclusions. Each train company operates in a different market and under different franchise agreements, signed at different periods. Levels of investment in infrastructure and rolling stock vary between routes and over time. For example, in recent years the west coast mainline has received massive investment in both rolling stock and infrastructure so that it has the capacity to meet demand in coming years. The east coast mainline, the finances of which have been good for decades, has not received major investment since 1991 and when it does the economics of that line will change. By competing with each other to win franchises, focusing on attracting more passengers and working with industry partners, train companies have delivered the huge change in financial performance from rail operations envisaged by privatisation 20 years ago. Michael Roberts Chief executive, Association of Train Operating Companies | • Comparing the finances of different rail franchises is a minefield and needs to beware of drawing the wrong conclusions. Each train company operates in a different market and under different franchise agreements, signed at different periods. Levels of investment in infrastructure and rolling stock vary between routes and over time. For example, in recent years the west coast mainline has received massive investment in both rolling stock and infrastructure so that it has the capacity to meet demand in coming years. The east coast mainline, the finances of which have been good for decades, has not received major investment since 1991 and when it does the economics of that line will change. By competing with each other to win franchises, focusing on attracting more passengers and working with industry partners, train companies have delivered the huge change in financial performance from rail operations envisaged by privatisation 20 years ago. Michael Roberts Chief executive, Association of Train Operating Companies |
| • The London-Norwich InterCity rail service is the slowest mainline in the country and operates the oldest electric express trains. Given East Coast's performance, perhaps this company could be asked to take up the Norwich-London route? For East Anglia, the plan to rush the franchise renewal to embed privatisation seems to include "refurbishing", once again, our tired old trains. Peter North Melton Constable, Norfolk | • The London-Norwich InterCity rail service is the slowest mainline in the country and operates the oldest electric express trains. Given East Coast's performance, perhaps this company could be asked to take up the Norwich-London route? For East Anglia, the plan to rush the franchise renewal to embed privatisation seems to include "refurbishing", once again, our tired old trains. Peter North Melton Constable, Norfolk |
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