Railways: East Coast Main Line

Lord Shipley Excerpts

Thursday 27th November 2014 Lords Chamber

[Baroness Kramer]

My Lords, there are enormous practical barriers relating to the basis on which funding is provided to the public service operator differing from that available to the private operators in the bid. It is crucial to ensure that we get the best ideas, innovation and investment in the service for the people who are going to use the east coast and that is exactly what this franchise delivers.

[Lord Shipley (LD)]

My Lords, I welcome the Minister’s announcement. It is the right decision. It delivers more services, greater investment, more trains and new routes. In addition, the trains for destinations on the east coast main line will be built in the north-east at Newton Aycliffe. The staff of East Coast do a magnificent job. Can the Minister confirm that they will all be guaranteed their jobs on current terms and conditions of service?

[Baroness Kramer]

The way in which this franchise has been set up is a sale of shares. All staff will remain on their existing contracts. They will continue effectively to be employed by the same employer. Whatever those terms are will continue. It is important to notice the ambitions in this franchise to improve training and opportunities for staff. Virgin has been clear that, with new services, it is going to need to train and hire new drivers and new on-board staff. There are no plans to close ticketing, although much friendlier services will be opened up.