Leading article: Rail contracts are on the wrong track

 

Wednesday 15 August 2012 17:23 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

It is easy to dismiss the lamentations of Sir Richard Branson as sour grapes. After all, his rail company spent almost £14m trying to hold on to its West Coast Main Line franchise, only to see it handed to rival FirstGroup. With the future of Virgin Trains now in question, it is perhaps not surprising to hear Sir Richard pouring scorn on the winning bid.

He is not the only sceptic, however. Where Virgin offered to pay £4.8bn to run the line, FirstGroup bid £5.5bn, based on predictions of soaring revenue growth considered impossibly optimistic not just by Sir Richard but by several independent industry experts.

Given the significant hit to the public purse if FirstGroup's numbers do not stack up, the Government's decision is certainly a risky one. More broadly, a franchising system which stacks the odds in favour of companies that over-promise surely needs a rethink.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in