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Train Operators Handed 29 Years Of Contract Extensions

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http://www.telegraph.co.uk/finance/newsbysector/transport/10015423/Train-operators-handed-29-years-of-contract-extensions.html

Ministers have come under attack for extending train operators’ contracts to run Britain’s railways by a total of 29 years, amid fears the move could “seriously” increase costs for the taxpayer.

Officials at the Department for Transport (DfT) are in talks with train companies to extend 12 major rail franchises after the Government decided last month to delay the process of re-letting many of Britain’s train services to new operators in the wake of the West Coast Main Line fiasco.

Only three franchises - the East Coast Main Line, Essex Thameside and Thameslink - will be re-let before the next General Election in 2015.

..

“Yet in the plans that have now been put forward, there are a large number of extensions of existing contracts and if they are all added together it comes to over 29 years. Why has the government decided to do that...when surely that cannot seriously deliver value for money if you are basing value for money on a competitive system?”

There are concerns train operators will now try to extract better terms from government as they know ministers have no alternative other than to extend their current agreements.

So train fares will go up even higher then.....

Still increasing costs is good as it increases GDP. :ph34r:

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So train fares will go up even higher then.....

Still increasing costs is good as it increases GDP. :ph34r:

If you read it, it's just scaremongering. It's 29 years between 12 contracts, not 29 years each.

That's less then 2.5 years on average.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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