https://thechamberlainfiles.com/rail-network-loses-its-virginity-2/ Politics, LEPs and economic development in the West Midlands Thu, 16 Aug 2012 23:32:11 +0000 hourly 1 http://wordpress.org/?v=3.3.2 https://thechamberlainfiles.com/rail-network-loses-its-virginity-2/#comment-3004 Regionalist Thu, 16 Aug 2012 23:32:11 +0000 https://thechamberlainfiles.com/?p=4210#comment-3004 No need to weep too many tears for Virgin. Given the dysfunctional franchising system and the fourfold increase in public subsidy since privatisation, Richard Branson has been enjoying the proverbial licence to print money. His supposed investment in The West Coast franchise has actually come from government infrastructure investment (£9 billion line upgrade) plus money borrowed via Network Rail (tax payer backed again). This money merry go round gives rail companies a guaranteed return which we pay for - and if the Government is now seeking better payback from franchise winner First, the new operator can still hand the franchise back with minimal penalties if the numbers don't work. Meanwhile passengers face ever higher fares on a service which - in no small way thanks to Virgin - has some of the highest rail fares in the world. Train companies come and go, the real issuel is that the fragmented privatised rail system is an expensive failure. No need to weep too many tears for Virgin. Given the dysfunctional franchising system and the fourfold increase in public subsidy since privatisation, Richard Branson has been enjoying the proverbial licence to print money. His supposed investment in The West Coast franchise has actually come from government infrastructure investment (£9 billion line upgrade) plus money borrowed via Network Rail (tax payer backed again). This money merry go round gives rail companies a guaranteed return which we pay for – and if the Government is now seeking better payback from franchise winner First, the new operator can still hand the franchise back with minimal penalties if the numbers don’t work. Meanwhile passengers face ever higher fares on a service which – in no small way thanks to Virgin – has some of the highest rail fares in the world. Train companies come and go, the real issuel is that the fragmented privatised rail system is an expensive failure.

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