In a new report on rail franchising, the Transport Committee reaches the conclusion that there are serious shortcomings in the Department for Transport (DfT)’s capability and capacity to manage rail franchising. The core policy objectives of franchising are not being met, the report states. The current model fails to deliver for passengers, to drive industry efficiencies, promote competition, reduce the taxpayer subsidy or transfer financial risk to the private sector.
The report concludes that without changes to the current model, it is difficult to see how franchising is sustainable in long term. The Transport Committee recommends the DfT to commission an independent review of its franchising functions, including the possibility of transferring enforcement powers to the Office of Rail and Road (ORR).
“The Department should take steps to restructure franchises and the bidding process. Open access operators, already operating successfully, could provide opportunities for new entrants to the franchise market. Longer term franchises should be considered, but only where the existing operator has delivered on performance. Streamlining operational alignment between Network Rail and train operating companies will address a fundamental flaw of the current system. These are improvements that must be made if franchising is to deliver for the passenger over the longer term,” Chair of the Committee, Louise Ellman MP, said.
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