Rail Franchising Debate

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Department: Department for Transport
Tuesday 26th March 2013

(11 years, 8 months ago)

Commons Chamber
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Lord McLoughlin Portrait Mr McLoughlin
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Reading station, in my hon. Friend’s constituency, has seen a major refurbishment. That will make a huge difference. There will be closures over Easter, but more platforms will open and the work at the station will conclude in two years. About £800 million has been invested. We would not be investing that kind of money if we were not getting a good return for the passenger, his constituents and those who are served further along that line by First Great Western.

Hugh Bayley Portrait Hugh Bayley (York Central) (Lab)
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Passengers on the east coast main line have twice suffered the catastrophic collapse of a private franchise. What guarantee can the Secretary of State give that whichever company gets the new franchise will not collapse, and will the railway headquarters remain in York?

Lord McLoughlin Portrait Mr McLoughlin
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As for where the headquarters will be, that will depend on the case that is put forward by the various companies that I hope will compete for the franchise. The hon. Gentleman is right: two franchises collapsed under the previous Government, so that and this Government have both had some problems with franchising. I hope we have learnt our lessons. The rail industry has become a lot better at competing for these franchises.