Posted 31st July 2013 | 2 Comments
'No-dividend' Welsh franchise under consideration
THE POSSIBILITY of a 'not for dividend' rail passenger franchise for Wales is being considered by a committee of the Welsh Assembly, as part of a consultation which will run until September.
The Welsh Government has suggested that the present Arriva franchise, which expires at the end of 2018, could be replaced by a 'no dividend' contract.
Other issues being placed on the table by the Enterprise and Business Committee for comment include whether the current franchise meets passenger needs and what lessons should be learnt from it, how passengers and local government should be involved, which routes should be included or added and the characteristics of the next generation of rolling stock.
The Committee also appears to be opening the door to a South West Trains-style Alliance, because it is asking whether the next franchise, whatever its shape, could support an 'enhanced relationship between Network Rail and the franchise operator and the benefits this might bring'.
The launch of the consultation follows a report last year published by the Co-operative Party which called for a 'mutual', publicly funded operator to replace the present commercial franchise, with the draft name of 'Rail Cymru'. The report claimed that there would no additional costs for taxpayers.
Comments should be sent to the Committee by 13 September.
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Bob Grundy, Lancing
In the old days, if railways made a profit, that proved society's valuation of their service - the amount paid by passengers and freight movers - was more than the cost of delivering the service. In the sixties that ceased to be true, but we realised that society got far more benefit from railways than it paid for directly. But for railways, our country would be all roads and no place to go. Barbara Castle's 1968 Transport Act established the Public Service Obligation: in return for their social and environmental benefits, railways were entitled to a subsidy.
But how do you value such benefits? Forty-odd years later, we're still looking for a logical basis on which to award subsidies. Hope I'm wrong but this latest effort looks no more promising than any other. If it's not for dividend, what is it for? Where is the motivation for 'Rail Cymru' to do a good job?
John Gilbert, Cradley, Herefordshire
Exactly what powers does the Welsh Government have over the railways? Of course they SHOULD have the same as Edinburgh but I seem to recall that Tony Blair - and other politicians since - gave them reduced powers/have not enhanced the existing powers. It is to be hoped that the Cardiff Parliament's current proposals are not hamstrung by Westminster - and I speak as an Englishman.