East Coast to stay in public ownership for two more years

PLANS to hand the East Coast rail franchise back to the private sector have been delayed for two years.

The Department for Transport had planned to put the line linking Scotland and London back in private hands later this year - two years after it took over the loss-making service from National Express.

However, Transport Secretary Philip Hammond yesterday said the new franchise would now not begin until December 2013, meaning it will stay in the public sector until then.

The delay was announced as part of a series of new UK rail franchising programmes, which is expected to see the average franchise increase from seven years, with the option of a three-year extension, to 15 years. Mr Hammond said East Coast had been put back to avoid having more than one franchise up for tender at once, a decision he said would deliver "taxpayer value".

But some politicians said it should remain permanently in public ownership. SNP MSP John Wilson said: "I would prefer to see it remain in the public sector after 2013 because of the mess the East Coast was left in under private ownership.

"The UK government should use this announcement as an opportunity to review the level of public funding private rail companies receive to provide expensive travel options."

Green MSP Patrick Harvie said: "The last time the Tories were in office, they broke up the railways and set public transport back by decades. This time they inherited an East Coast main line running pretty effectively in the public sector, and which should be the basis for a renewed rail network run on a not-for-profit basis."