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Rail minister announces franchise reform proposals

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Rail franchises would be longer, more flexible and responsive to the needs of passengers, and provide better value for taxpayers, under proposals set out by Theresa Villiers, the UK government rail minister.

The proposals provide for franchises to run for 15 years as standard, so long as performance levels are maintained.

The reforms will also set tough requirements for train operators to deliver on passenger satisfaction. Operators could face being stripped of their contracts if they fail to meet those requirements.

Villiers said: ’The existing franchise system is too complicated, with too much micromanagement from Whitehall. We need a system that sets the private-sector operators tough requirements on passenger outcomes and satisfaction, but gives them more scope for enterprise and innovation in working out the best way to deliver them.’

A review of the industry by Sir Roy McNulty is currently studying ways of reducing the long-term cost of the industry to taxpayers and fare payers.

’His preliminary work will be delivered in September and will feed into our further thinking on franchise reform. We are clear that, if the railways are to be made more efficient and cost effective, early changes to the franchising system are essential,’ added Villiers.

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