Government takes control of trains to avoid collapse as coronavirus decimates commuter travel

Ministers move to ‘renationalise’ rail network: Government steps in to underwrite train firms amid fears coronavirus crisis could mean key services collapse

  • The Department for Transport (DfT) is suspending franchises for six months 
  • Figures showed passenger numbers have fallen by up to 70 per cent
  • Transport Secretary Grant Shapps said it would help rail staff and commuters 
  • Coronavirus symptoms: what are they and should you see a doctor?

The Government moved to take emergency control of the rail network today to avoid a total collapse caused by the coronavirus pandemic.

The Department for Transport (DfT) said it was suspending franchises for six months in order to ‘minimise disruption to the rail sector’, safeguard jobs and allow key workers to move around.

Since Boris Johnson told the public to work at home if they could last week, widespread parts of the network have seen a collapse in commuter numbers, with operators already running reduced services.

The DfT today said it would offer them the chance to transfer all revenue and cost risk to the Government, and be paid a small management fee to run services.

Industry body the Rail Delivery Group (RDG) said it ‘strongly welcomes’ the proposal, which stops short of a full nationalisation of the railways.

Transport Secretary Grant Shapps said: ‘We are taking this action to protect the key workers who depend on our railways to carry on their vital roles, the hardworking commuters who have radically altered their lives to combat the spread of coronavirus, and the frontline rail staff who are keeping the country moving. 

The DfT said figures showed passenger numbers have fallen by up to 70 per cent, while ticket sales are down by two-thirds. Pictured is Euston station in London

Transport Secretary Grant Shapps said: 'We are taking this action to protect the key workers who depend on our railways to carry on their vital roles, the hardworking commuters who have radically altered their lives to combat the spread of coronavirus, and the frontline rail staff who are keeping the country moving'

Transport Secretary Grant Shapps said: ‘We are taking this action to protect the key workers who depend on our railways to carry on their vital roles, the hardworking commuters who have radically altered their lives to combat the spread of coronavirus, and the frontline rail staff who are keeping the country moving’

‘People deserve certainty that the services they need will run or that their job is not at risk in these unprecedented times.

‘We are also helping passengers get refunds on Advance tickets to ensure no-one is unfairly out of pocket for doing the right thing.

‘These offers will give operators the confidence and certainty so they can play their part in the national interest.’

Allowing operators to enter insolvency would cause ‘significantly more disruption to passengers and higher costs to the taxpayer’, the DfT said.

It said figures showed passenger numbers have fallen by up to 70 per cent, while ticket sales are down by two-thirds.

Rail timetables have been slashed because of Covid-19.

Anyone holding an Advance ticket will be able to get a refund free of charge, while administrative fees have been waived for season ticket refunds.

The terms and conditions of employment for rail workers will not change.

The department said the maximum fee given by the Government to train operators would be 2 per cent of the value of a franchise before the Covid-19 pandemic began.

It is intended to incentivise companies to meet performance targets, and will be ‘far less than recent profits earned by train operators’.

Andy McDonald, the shadow transport secretary: ‘Labour backs measures that will keep key workers and freight moving on our railway during this crisis.

‘There are very few emergency options available in these most difficult of circumstances. 

The imperative is to maintain a functioning rail network throughout this emergency.’  

The DfT added that the Government-controlled Operator of Last Resort (OLR) ‘stands ready to step in’ for operators which do not accept the emergency measures.

This would effectively mean nationalising franchises.

The OLR already runs Northern and LNER.

RDG chief executive Paul Plummer said: ‘The industry strongly welcomes the Department for Transport’s offer of temporary support and, while we need to finalise the details, this will ensure that train companies can focus all their efforts on delivering a vital service at a time of national need.’

Shadow transport secretary Andy McDonald said: ‘Labour backs measures that will keep key workers and freight moving on our railway during this crisis.

‘There are very few emergency options available in these most difficult of circumstances.’

 

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