Paused Franchises to restart soon?

[HH]

Following the appointment of Interim Franchise Director, Peter Wilkinson (last seen working on NR Alliancing), on Friday, there are rumours that an announcement is imminent on re-starting the paused Franchises, including TSGN.

You read it here first.

 

[HSTEd]

In other words.... as soon as the press is looking at something else.


Has anything actually changed since the ICWC debacle?

 

[WCMLaddict]

Good appointment IMO.

Very experienced and knowledgable guy. He is top class manager so I hope he will make things work.

I can only wish him good luck

 

[jopsuk]

Well the review concluded, against sanity, that the franschising model was fine...

 

[Class377/5]

Rumour is this week (thursday was last date I heard) sees announcement on TSGN franchise restarting.

 

[HSTEd]

The objective will likely to be hand out as many very-long franchises as possible before 2015 to tie the hands of the next government.

 

[ainsworth74]

The objective will likely to be hand out as many very-long franchises as possible before 2015 to tie the hands of the next government.

So continuing the previous policy of moving to long franchises? So no change at all?

 

[HSTEd]

So continuing the previous policy of moving to long franchises? So no change at all?

Short franchises have their own set of horrific problems that we have become well accustomed to since 1993.
They won't want to return to those days.

 

[HH]

So continuing the previous policy of moving to long franchises? So no change at all?

Someone's making some uninformed assumptions.

An announcement is being made tomorrow, I expect first thing, about the three paused franchises. We will get some pointers as to DfT thinking by what happens there.

Rumours suggest that TSGN will re-start shortly; that ET will have to be re-bid but remain largely unchanged, but that GW will re-start completely. Given rumours about the imminent closure of the Rolling Stock contract, I'm tending to believe the former; ET seems a reasonable call, but I'm not sure what would drive the GW decision (except possibly a desire to keep First from suing, but that can hardly be the headline reason...).

 

[Pumbaa]

Announcement confirmed for tomorrow morning.

 

[WatcherZero]

I think we have seen the death of very long franchises of 15+ years after this and we will see most as medium length of around 10 years give or take a couple. That said to get a regular renewal rate as the report suggested they would have to provide a wide variability in the length of those awarded in the short term as so many are up for renewal at the same time.

 

[Class377/5]

Announcement confirmed for tomorrow morning.

Do we know time of announcement? Rumours of following Brown suggestion of management contract seems to be favourite for TSGN.

 

[tbtc]

to get a regular renewal rate as the report suggested they would have to provide a wide variability in the length of those awarded in the short term as so many are up for renewal at the same time.

This is the problem.

Ideally we could have something like fifteen franchises let on a fifteen year basis, so one comes up for renewal each year.

One reason I've always been in favour of longer franchises is that it'd encourage investment in new stock, but the recent announcements (e.g. a hundred SWT carriages, a hundred Southern carriages) suggest that the Government are taking responsibility for that side of things.

 

[Pumbaa]

I am hearing: Essex Thameside to get a 14 month extension. Western scrapped.

 

[WatcherZero]

today (thursdays) Telegraph reportedly says First given an extension on the Great Western franchise.

 

[Morgsie]

The Transport Select Committee has produced a Report regarding the DfT screw Up over the WCML franchise http://www.publications.parliament.uk/pa/cm201213/cmselect/cmtran/537/53702.htm

http://www.bbc.co.uk/news/business-21266501

 

[PR1Berske]

3. In our view, we cannot categorically rule out the possibility that officials manipulated the outcome of the competition not only to keep First Group in the running for as long as possible, as Mr Laidlaw suggested, but to ensure that First got the contract. We recommend that the DfT find a way of undertaking a full email capture, reporting to someone suitably independent, to help get to the bottom of why DfT staff discriminated against Virgin and in favour of First Group during the ICWC franchise competition. (Paragraph 28)

Blimey!

 

[HH]

https://www.gov.uk/government/speeches/rail-franchising--16

So FGW cancelled; the others delayed "for up to two years", although ET will have a new ITT "in the summer". Looks like DfT is buying themselves time. Lots of it.

 

[GoByThameslink]

the way forward has been announced by the DfT: https://www.gov.uk/government/news/rail-franchising-future-programme

"Franchising decisions include:
•

• The competition for the Essex Thameside franchise will be resumed with a revised invitation to tender for a 15-year franchise issued to existing short-listed bidders over the summer. Negotiations will commence with current train operator c2c for an interim contract of up to 2 years
• The Great Western franchise competition will be terminated. The current franchise will now run until October after the department exercised its contractual right to extend the current contract with First Great Western by 28 weeks. Negotiations for an additional two-year contract will commence with the operator, while longer-term proposals will be set out in the spring
• The Thameslink, Southern and Great Northern franchise competition will be resumed with the department working towards awarding a 7-year contract. The current Thameslink/Great Northern franchise operated by First Capital Connect ends in September but allows for a 28-week extension, which the department intends to exercise. Negotiations will commence for a further contract of up to 2 years as part of the finalisation of the wider franchise programme"
  

FCC have a Stakeholder forum tonight, including Vernon Baker, MD UK Rail First Group. It will be interesting to see if there is any extra detail.

 

[HH]

The Transport Select Committee has produced a Report regarding the DfT screw Up over the WCML franchise http://www.publications.parliament.uk/pa/cm201213/cmselect/cmtran/537/53702.htm

http://www.bbc.co.uk/news/business-21266501

The other interesting bit is the scathing (and IMO quite deserved seeing as they appear to have taken no interest in the ICWC Franchise at all) comments about the DfT Board (of which Laidlaw is a member).

 

[fgwrich]

The other interesting bit is the scathing (and IMO quite deserved seeing as they appear to have taken no interest in the ICWC Franchise at all) comments about the DfT Board (of which Laidlaw is a member).

Another rather well thaught dig at the DfT was this comment.

"Embarking on an ambitious - perhaps unachievable - reform of franchising, in haste, on the UK's most complex piece of railway, was an irresponsible decision for which ministers were ultimately responsible.

"This was compounded by major failures by civil servants, some of whom misled ministers."

the way forward has been announced by the DfT: https://www.gov.uk/government/news/rail-franchising-future-programme

"Franchising decisions include:
•

• The competition for the Essex Thameside franchise will be resumed with a revised invitation to tender for a 15-year franchise issued to existing short-listed bidders over the summer. Negotiations will commence with current train operator c2c for an interim contract of up to 2 years
• The Great Western franchise competition will be terminated. The current franchise will now run until October after the department exercised its contractual right to extend the current contract with First Great Western by 28 weeks. Negotiations for an additional two-year contract will commence with the operator, while longer-term proposals will be set out in the spring
• The Thameslink, Southern and Great Northern franchise competition will be resumed with the department working towards awarding a 7-year contract. The current Thameslink/Great Northern franchise operated by First Capital Connect ends in September but allows for a 28-week extension, which the department intends to exercise. Negotiations will commence for a further contract of up to 2 years as part of the finalisation of the wider franchise programme"
  

FCC have a Stakeholder forum tonight, including Vernon Baker, MD UK Rail First Group. It will be interesting to see if there is any extra detail.

Sounds like the perfect way to do it. Let's cancel the current GW Franchise tender, take the money and run. Then, we'll apparently 'lock' FGW into a 28 Week extension, followed by a do as your told 2 year extension leading into...2015. This is when the Crossrail rebuilding get's into full swing, GW Electrification will be going up including the Thames Valley, the first of the IEPs will be arriving - in what TOC guise? And then there's the Reading Remodelling to be completed. Sounds like a typically well run DfT then. :roll:

 

[Wath Yard]

So by proceeding with Brown’s proposal for a management contract for Thameslink McLoughlin has accepted his argument that TOCs seeking a profit can’t be trusted to put the passenger’s interests first in times of disruption. However, it seems that once the infrastructure projects are complete is it perfectly acceptable for the same companies who couldn’t be trusted to put passenger’s interests first to cream off large profits when the service has bedded in after the tax payer has taken the financial risk during the enhancement works.

So the companies won’t be contributing to the enhancements, won’t be taking any financial risk during the enhancements but will then benefit from them. How is that an endorsement of franchising?

Also where does it leave other franchises that are going to have years of disruption, such as Northern, TPE, GWML and the MML?

 

[charlee]

Looks like national express are ****ed off and looking to reclaim there money. All four are mad apparently could mean they don't bid for the franchise again.

I don't understand why it's only the GW that has to restart.

 

[HH]

So by proceeding with Brown’s proposal for a management contract for Thameslink McLoughlin has accepted his argument that TOCs seeking a profit can’t be trusted to put the passenger’s interests first in times of disruption.

That was not his argument at all. Ergo what follows is equal codswallop.

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Looks like national express are ****ed off and looking to reclaim there money. All four are mad apparently could mean they don't bid for the franchise again.

I don't understand why it's only the GW that has to restart.

I have heard that NX have threatened to sue DfT; certainly they have some reason to feel aggrieved. Here's a story from the Telegraph.

National Express has accused the Government of “gross negligence” and wasting £10m of its shareholders’ money after the bidding competition for the prestigious Great Western rail franchise was scrapped... Asked if he would pursue legal action, Mr Finch replied: “I’ll explore every option.”

Arriva must certainly be hacked off too, as it was their only qualification.

First can hardly be too upset as they get two franchises (one currently making large losses, the other very small profits) extended, and certainly on better terms and they're in both the currently progressing bids.

 

[fgwrich]

That was not his argument at all. Ergo what follows is equal codswallop.

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I have heard that NX have threatened to sue DfT; certainly they have some reason to feel aggrieved. Here's a story from the Telegraph.


Arriva must certainly be hacked off too, as it was their only qualification.

First can hardly be too upset as they get two franchises (one currently making large losses, the other very small profits) extended, and certainly on better terms and they're in both the currently progressing bids.

I wonder what implications this will have on the DfT though, as of course any potential bidder for the GW Franchise has to quietly accept having the DfTs woeful IEP thrust upon them. Upsetting the industry will do them no further favours in the future - First Group must still be pretty hacked off with them for the West Coast farce, so to potentially be locked into a 2 year do nothing / do as we say franchise extention must really be irking them off.

And another problem all these franchise extentions will bring, is a potential impact on maintenance. Several of FGWs 150s should already be undergoing their C6 overhauls at the moment, these im led to believe have been delayed because of the fact knowone knows who'll be operating the train as soon as the paint has dried. But Hey Ho, The Brown Report say's their doing fine, so the DfT / Cival Service & Yes Ministers must be doing something right - it's not as if their's 'Red Lights' flashing at other departments at the moment either.....

 

[Wath Yard]

That was not his argument at all. Ergo what follows is equal codswallop.

Really? I think you need to watch the TSC review of Brown's report. That is exactly what he said, but obviously it doesn't match your personal view that privatisation has delivered everything that is good about Britain's railways, so it's a bit inconvenient.
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Looks like national express are ****ed off and looking to reclaim there money.

So presumably if they think the DfT should refund their bidding costs for Great Western they won't be playing hardball over the extension of Essex Thamesside, because that would be unfair wouldn't it?

 

[jimm]

I don't understand why it's only the GW that has to restart.

Read the supplement to the Brown report released yesterday, which includes the sections that were taken out when the rest was published, as they were directly relevant to what to do with the suspended franchise contests. See pages 5 and 6.

What he says about each one has clearly shaped the DfT's decisions - especially in terms of the issues of transfer of financial risk between the operators and the Government and the differences in what had been said to bidders on this particular topic in respect of the individual franchises.

https://www.gov.uk/government/uploa...t_data/file/69999/supplement-brown-review.pdf
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Quote:
Originally Posted by Wath Yard
So by proceeding with Brown’s proposal for a management contract for Thameslink McLoughlin has accepted his argument that TOCs seeking a profit can’t be trusted to put the passenger’s interests first in times of disruption.

Originally Posted by HH
That was not his argument at all. Ergo what follows is equal codswallop.

Really? I think you need to watch the TSC review of Brown's report. That is exactly what he said, but obviously it doesn't match your personal view that privatisation has delivered everything that is good about Britain's railways, so it's a bit inconvenient.

Never mind what he said at the transport select committee, the words used in relation to the Thameslink/Southern/Great Northern franchise in the supplement to his report released yesterday are subtly different

there is merit in the TSGN short franchise having elements akin to a management contract

which is not the same as it being a straight management contract, is it?

locked into a 2 year do nothing / do as we say franchise extention

And your justification for this assertion is what? The Virgin extension is not a 'do nothing' agreement - unless taking concrete steps towards services to Blackpool and Shrewsbury is doing nothing - and there are lots of councils and user groups in FGW-land who had plenty to say about developing services in the consultation on the FGW franchise who will not be prepared to sit there meekly, waiting several more years to see anything happen.

 

[Pumbaa]

Never mind what he said at the transport select committee, the words used in relation to the Thameslink/Southern/Great Northern franchise in the supplement to his report released yesterday are subtly different

there is merit in the TSGN short franchise having elements akin to a management contract

which is not the same as it being a straight management contract, is it?

I read that as Browns implicit approval of a management type contract, but he couldn't say it outright as that's not the report he was asked to write...

 

[jimm]

I read that as Browns implicit approval of a management type contract, but he couldn't say it outright as that's not the report he was asked to write...

It's open to interpretation, absolutely, but he could just as well have said straight out that it should be a management contract until the route modernisation was complete and left it at that.

I don't buy the idea he just wrote "the report he was asked to write". He said lots of things that most certainly were not music to DafT's ears.

 

[Pumbaa]

I don't buy the idea he just wrote "the report he was asked to write". He said lots of things that most certainly were not music to DafT's ears.

I *personally* think that he left many stones unturned, stopped probing before things got awkward and raised an 'acceptable' level of eyebrow to stop more people than already have accusing him of writing the report he was told to.

I certainly feel it was a disappointment.