(Secretary of State for
Transport): Passengers in the north have had to put
up with unacceptable services for too long. We understand how
frustrating this has been for people and we are taking action to
make sure that performance improves.
On 16 October 2019 I informed the House, through the Transport
Committee, that I had issued a request for a proposal to the
current Northern franchisee, Arriva Rail North (ARN) and to the
Operator of Last Resort as the first phase of securing options
for the continuation of passenger services on the Northern
franchise. This was triggered by concern over the financial
position of ARN.
It has now been confirmed to me from the most recent available
financial information that the franchise will only be able to
continue for a number of months. The proposal I requested from
ARN is being evaluated. Following completion of this process I
will consider whether to award ARN a short-term management
contract or whether to ask the Department of Transport’s own
Operator of Last Resort to step in and deliver passenger
services. Longer-term decisions on the franchise will be made in
the light of the recommendations of the Williams Rail Review.
My decision on which short-term option to choose will be made in
accordance with the key principles set out in the statement on
how I use my rail franchising powers. This includes:
- protecting the interests of passengers
- ensuring business and service continuity
- preserving the interests of taxpayers by ensuring value for
money
- the continued quality of the franchise proposition;
In order to inform this decision, the Department will assess the
extent to which each option performs against these principles.
Our value for money assessment will be based on a number of
criteria, including which option returns most money to the
taxpayer, the risks attached to each, and the value of any
improvements in passenger services. I intend to announce my
decision before the end of January 2020.
To clarify, the current financial position of the Northern
franchise will not impact on the railway’s day-to-day operations.
Services will continue to run and there will be no impact on
staff.
