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East coast rail services are safe despite National Express shock (From Durham Times)
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East coast rail services are safe despite National Express shock
8:57am Wednesday 1st July 2009
STAFF on the East Coast rail franchise will be retained, services maintained and tickets honoured, Transport Secretary Lord Adonis confirmed this morning.
He was speaking after debt-ridden National Express said it would give up the franchise to operate rail services between London and Scotland following the resignation of the company's chief executive, Richard Bowker.
Lord Adonis said it was now also "possible" the Government could also take control of National Express's other two rail franchises.
A publically-owned company has now been set up to take over the running of the East Coast main line, which serves York, Northallerton, Darlington, Durham and Newcastle until the franchise can be again put out to tender.
"What the company has said is that it will not commit additional resources to the franchise from the holding group," said Lord Adonis.
"National Express are defaulting on the terms of their contract.
"We have to pay out whatever it takes to ensure services continue.
"All tickets will be honoured. There will be no disruption to services. The staff will be retained. We are concerned to ensure there is continuity."
Commenting on the failed attempts by National Express to renogiatiate its East Coast franchise, he added: "The Government is not prepared to renegotiate rail franchises.
"I am simply not prepared to bailout companies that are unable to fulfil their commitments.
"If you did so all the other train operating companies would want a bailout."
A spokesman at the Department for Transport said: "It is simply unacceptable to reap the benefits of contracts when times are good, only to walk away from them when times become more challenging."
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Your Say YourTimes
Haji el Maveric, Darlington says...
9:37am Wed 1 Jul 09
Super steve, The land that labour ruined says...
11:34am Wed 1 Jul 09
Haji el Maveric wrote:And that is why they are still selling off various chunks such as schools, hospitals, air traffic control etc etc. They are Labour to the core, completely and utterly useless.
What a ridiculous comment. The Government had no alternative but to step in - just like they did with the banks. The East Coast Mainline will only be taken into public ownership until a new investor can be found. The current Labour party have ditched Socialism and are opposed to public ownership.
End of the line: National Express train
Assurances: Lord Adonis
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Super steve, The land that labour ruined says...
9:26am Wed 1 Jul 09
So it wont be long before we see slow, dirty, overcrowded, over priced and normally late trains being held to ransom by weekly strikes and walk outs by the trade unions. another stunning success for New Labour turning a fast modern efficient upgraded rail system into a basket case.