DfT admits to rigging rail franchise market for privateers

January 5, 2017

DfT admits to rigging rail franchise market for privateers

RAIL UNION RMT says that today’s revelations in the media that the DfT intend to rig the rail franchise market to ensure privateers have their profits protected must be explained to Parliament and rail passengers.

The Department for Transport’s  Managing Director of Passenger Services has admitted to rigging the so called rail franchise market in order to boost company’s profits at the expense of passengers.

 In a news story today in The Times newspaper devastating details have emerged of a ‘private meeting’ between Peter Wilkinson and HSBC bank in which it is alleged he revealed how the Department will loosen financial agreements to “protect future franchises” and even “retrofit” existing franchises to alleviate the impact of any fall in passenger numbers.

Previously, Mr Wilkinson is on record as saying that train drivers that resist changes to their working practices can “get the hell out of my industry”

 Mick Cash RMT General Secretary said:

“This should come as no surprise to passengers experiencing fare increases today and simply confirms what we have been consistently saying for over twenty years.

“Train operating company profits are not earned in the market but politically fabricated out of regulatory obfuscation, political expediency and dodgy contracts which create profitable positions for private shareholders in a subsidised industry.

“How the Managing Director of Passenger Services can be promising a bank protection for this bogus profit laundering franchising system is beyond belief and is something the Secretary of State must urgently explain to Parliament.” 

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