05.10.12
Claims of anti-Virgin bias denied
The DfT has rejected accusations that there is anti-Virgin bias among its officials in the wake of the West Coast franchising fiasco.
It has also emerged that former transport secretary Justine Greening was informed about an ‘error’ in the franchise evaluation process soon after Virgin launched its legal challenge to the Government’s decision.
Responding to allegations about ‘anyone but Branson’ bias in the Department made in the Daily Mail, including claims about derogatory emails, a DfT spokesman said: “There is no culture of bias against Virgin at the Department for Transport and we have seen no evidence to suggest that there is.
“We are also not aware of any email exchanges that are derogatory towards Virgin or suggest that officials have acted in any way other than impartially and in good faith.”
Three officials – whose names have not been formally released – have been suspended over the errors that led to every re-franchising process being halted, and there may yet be more. Civil service union PCS attacked the Government for blaming civil servants “before any of the facts have been established” and said ministers were trying to dodge the blame.
The former head of the civil service, Lord O’Donnell, told BBC Radio 4’s Today programme yesterday that many departments were suffering from skills shortages and a lack of top-flight talent.
The first of two reports into the shambolic events at the DfT is due before the end of the month.
There are growing expectations that Virgin will agree a deal with the Government to continue operating West Coast services after December 9, once its current franchise ends, as the mess is sorted out and a fresh franchising competition is held. Sir Richard Branson has said: “We believe the only sensible option is for us to keep it.”
One of the key errors in the DfT’s calculations was about the size of FirstGroup’s bond, which it would relinquish in the event of it not delivering on its promises. Virgin had claimed early on the amount was too low.
In late August, before she was reshuffled to the Department for International Development, Justine Greening ordered an investigation when she was informed about an error in the calculations.
Shadow transport secretary, Maria Eagle, said: “The prime minister should come clean on when he knew, and on any connection with the decision to conduct a wholesale clearout of Tory transport ministers before this fiasco became public.”
Tell us what you think – have your say below or email us directly at [email protected]