Rail Franchising

Debate between Will Quince and Lloyd Russell-Moyle

Wednesday 10th January 2018 Commons Chamber

[Will Quince]

I have served on the Transport Committee with my hon. Friend for two years. He is right that, in the invitation to tender for our most recent franchise on the Great Eastern main line, the three companies that put in a bid were Abellio, the existing franchise holder; National Express, which had had the franchise taken away when it was given to Abellio; and FirstGroup, which had had the franchise taken away when it was given to National Express. He is right that we need to encourage more bids.

Large franchises mean that multimillion-pound bonds are put up by companies that are looking to run the services, and there is a lot of risk even for large companies. We should consider creating smaller franchises that carry less risk, thereby attracting more interest and more bids, delivering more competition and, ultimately, better value for taxpayers’ money.

[Lloyd Russell-Moyle]

Would allowing councils, local authorities and other public bodies to bid for franchises not be a good way of ensuring more competition, and competition that people can control?

[Will Quince]

The honest answer is most likely not, but I agree that we need more competition. I agree with my hon. Friend the Member for Bexhill and Battle (Huw Merriman) that we need more open access.