Gathering Steam

Here:

Pressure is building on the Welsh Government to push for a not-for-profit publicly-owned rail service in Wales as an inquiry was launched into the future of the service by an influential Assembly committee.

The National Assembly’s Enterprise and Business committee will examine the future of the Wales and the Borders rail franchise, currently operated by Arriva Trains Wales, to see whether it meets passenger needs.

The inquiry consultation will look at how the franchise could improve passenger experience, including routes, service levels, and rolling stock, and how passengers, communities and local government should be involved in development and delivery.

Arriva Trains Wales currently runs Wales-only services until the new franchise begins in 2018.

“The Committee has chosen to examine the future of the Wales and Borders Rail Franchise following our broader examination of integrated transport in Wales,” said Nick Ramsay, chair of the committee.

“That inquiry raised issues around the integration of rail services with other modes of transport, and now the Committee wants to take a closer look at how the rail franchise itself should be delivered in future.

“This inquiry will look at what can be learned from the current franchise, and how the new franchise can deliver the services passengers need, while also providing value for money for passengers themselves as well as taxpayers more generally.

“We would like to hear from people who use, operate and work with these rail services to help inform our findings and shape our recommendations.”

The inquiry follows the launch of a report by the Co-operative Party – and backed by some Welsh Labour figures – last year which called for a publicly-funded railway mutual to run Welsh train services when the current private tender ran out.

That report called for an arms-length, not-for-profit “Rail Cymru” organisation to replace Arriva, which the party said would not be more expensive for the taxpayer.

The report’s author, rail expert Professor Paul Salveson, said it should be principally funded by the Welsh Government and be run on a social enterprise model, similar to the water company Glas Cymru, which sees profits reinvested directly into the service, rather than go to shareholders.

But the concept has met resistance from the Westminster coalition government, with former Transport Minister Justine Greening previously saying the UK Government would not allow Scotland to run its rail services by a “publicly-owned operator”.

Responding to the launch of the consultation, Plaid Cymru Leader Leanne Wood said it was an opportunity to explore the option of taking the routes into non-private hands.

“The committee should explore all options, including innovative solutions for the future of the rail service in Wales and ensure that any decisions are made in Wales,” she said. “Plaid Cymru are calling for a not-for-dividend company to take over the franchise, which would mean that fares would be invested in services and infrastructure rather than going into shareholders’ pockets.

“The Labour government has been slow to act to improve development and delivery of the rail service and planning for the future needs to be happen now, before the franchise comes up for renewal in 2018.”

Mick Whelan, general secretary of Aslef, the train drivers’ union, said: “We are fully supportive of any initiative that helps create a realistic prospect of changing the current – and failed – franchise model.

“We want to bring the railways back into public ownership and welcome any plan, with a co-operative or mutual model, which will put a stop to the privateers making a private profit out of a public service.

“Privatisation of the railways has failed. Even Margaret Thatcher admitted it was one privatisation too far. Since privatisation, fares have soared, taxpayer subsidies have risen, rolling stock has got older and overcrowding has got much worse. We need – and the people in Wales deserve – a properly integrated, properly managed, publicly owned railway.”

An Arriva Trains Wales spokesperson said: “We'll be submitting evidence into the inquiry and we look forward to working with Welsh Government in shaping the future of rail services in Wales.”