MP calls rail franchise bid 'naive' after collapsepublished at 08:17 British Summer Time 12 September 2018
Sandish Shoker
BBC News
It's been claimed the collapse of the franchise bid for the East Coast mainline which links Newark to the north could - and should - have been avoided.
That's the view of Nottingham South MP and chair of the Transport Committee Lilian Greenwood following a report which has been released by the committee today.
Image source, Getty ImagesRail services on the route were taken back into Government control when Stagecoach and Virgin Trains ended their contract early, with losses of around £200m.
Ms Greenwood said the Department for Transport had not conducted appropriate due diligence that would have spotted the weaknesses of the new East Coast Partnership's bid to take over the route.
She said: "Virgin Stagecoach put in an over optimistic bid. They were naive about what they could achieve and right from the outset they were playing catch up to meet their revenue projections."
Transport Secretary Chris Grayling said: "Stagecoach and Virgin Trains got their bid wrong and they are now paying a price."
