As the Carillion collapse raises questions about outsourcing contracts, it appears the public has finally had enough of privatisation, with 57% calling for our railways to be renationalised
84% of those with a view believe the government was wrong to bail out the East Coast Rail franchise — including 77% of Conservatives, polling has revealed.
Taxpayers will be left with a £2bn bill from the botched rail re-privatisation, when Stagecoach and Virgin Trains are allowed to cut short their East Coast Rail franchise without paying the money they promised.
But as the Carillion collapse raises questions about outsourcing contracts, it appears the public has finally had enough, with over half— 57%— calling for our railways to be renationalised, according to BMG Research polling conducted exclusively for Left Foot Forward.
Campaigners also gathered outside Kings Cross station in London today, to mock the bailout.
The train operator, a joint venture led by Stagecoach with Sir Richard Branson’s Virgin Group, had pledged to pay £3.3bn to run the service until 2023 when it was reprivatised in 2015, after six years in public hands.
But under transport secretary Chris Grayling’s rail strategy, a new partnership model will replace the franchise contract, letting the struggling companies off the hook.
To highlight the absurdity of the bailout, protesters today staged a ‘fundraiser’ for Branson.
Brandishing fake collection buckets and placards with the slogan ‘Branson’s Big Bailout’, Campaign group We Own It, which organised the event, said privatisation has had its day.
Director Cat Hobbs said:
“Privatisation has failed. The solution is clear: accountable, efficient public ownership. Chris Grayling should bring the East Coast line into public hands, which worked very well from 2009 to 2014 – before we all get ripped off again.“
It’s been clear for a while the rail franchise is failing. In November, Andy MacDonald, the shadow transport secretary, told the Commons that the strategy announcement was “a total smokescreen”.
He said: “The real issue is that the East Coast franchise has failed again and the taxpayer will bail it out.”
When news of the early release broke, Stagecoach shares jumped 13%. MacDonald said:
“Markets don’t lie. The secretary of state has let Stagecoach off the hook for hundreds of millions of pounds. He’s tough on everyone except the private sector.”
The company have also said they intend to bid again for the new contract.
“Whether it’s Carillion or Virgin, it’s the same old story,” said Hobbs. She continued:
“Private companies grab profit while they can and leave the public to pick up the pieces. Richard Branson sued our NHS and is now backing out of his promises on the East Coast line. The government must stop allowing these chaotic, blood sucking private companies to run our vital public services.”
If you think it’s time to take our railways back you can add your name to a petition asking Chris Grayling to bring the East Coast line into public ownership.
Or join the twitterstorm, using the hashtag #BransonBailout.
Charlotte England is a freelance journalist and writer at Left Foot Forward. Follow her on Twitter.
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3 Responses to “Almost everybody thinks the government was wrong to bail out StageCoach – even Conservatives”
Elizabeth Chell
Oh well done Chris Grayling; he’s been unhelpful with Southern Rail transport and now let’s Stagecoach of the hook! Unbelievable incompetence: social, ethical, and economic..
Jimmy glesga
The Tories privatised the railways to split the trade unions and make money for their friends.
The public are split on this because they do not want the unions to use the strike for political means and cripple the entire network.
A no strike agreement should be agreed as part of nationalisation.
Glen Hague
those privatised public services which have no other competitors are obviously going to give bad service, be more expensive etc. Renationalise electricity, water and rail now!