Andy McDonald
Main Page: Andy McDonald (Labour - Middlesbrough and Thornaby East)Department Debates - View all Andy McDonald's debates with the Department for Transport
(9 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Andy McDonald (Middlesbrough) (Lab)
In 2011, FirstGroup, which runs Great Western, avoided paying contractual premium payments to the Treasury by choosing not to take up its option of a three-year extension, but in January 2013, the Secretary of State abandoned the competition for a new franchise and simply agreed a renewal with First until 2015, and subsequently announced a second direct award running till 2019, thereby avoiding the inconvenience of a competitive bidding process. Have not the Government made a mockery of free market franchising?
Mr McLoughlin
I welcome the hon. Gentleman to his post. As I said last week in a transport debate, I hope he lasts longer than his predecessor—[Interruption.] I think there was somebody in between. The contract to which he refers did have a break clause for First, but it was negotiated by the Labour Government. Therefore, they caused that break and it was part of their contract.
I am pleased to be able to remind the hon. Gentleman of the words of the right hon. Member for Tooting (Sadiq Khan), who I believe has an important role in the Labour party—I hope it is a very unsuccessful one in a few weeks’ time. He said that:
“one reason we are able to invest record sums in our railway service is the revenues that the franchises bring in and the premiums that they pay”.—[Official Report, 1 July 2009; Vol. 495, c. 430.]
He said that when he was in a position of responsibility: that of Transport Minister.