05.05.16
Increased open access could limit franchise service expansions, Lords warn
Increased open access services will mean existing promises to expand franchises such as reinstating Virgin services to Lincoln will no longer be honoured, peers have warned.
Liberal Democrat peer Baroness Randerson told Lord Ahmad, the Parliamentary under-secretary to the Department for Transport and the Home Office, that the increased franchising competition recommended by the Competition and Markets Authority would fill all the slots earmarked for Virgin services to Lincoln.
However, Lord Ahmad said that there will be an additional six trains from London to Lincoln and five trains the other way from May 2019, as well as the introduction of upgraded train interiors.
Lord Bradshaw pointed out that under the Railways Act 1993, the Office of Rail and Road (ORR) are obliged to promote competition when deciding open access applications but not obliged to consider the interests of passengers, the public purse or subsequent franchise competitions.
Lord Ahmad replied that Patrick McLoughlin, the transport secretary, had written to the ORR asking them to “put the customer at the heart” of franchise reforms, but ruled out regulatory changes.
He said McLoughlin had also asked the ORR to show the Department for Transport the recommended changes to the current open access charging structure before any new open access agreements were granted.
Labour’s Lord Harris accused the government of “conniving with the train operating companies” after another Labour peer, Lord Rosser, said that improvements to passenger compensation arrangements recommended by the ORR following a super-complaint from Which? were being delayed until October 2017.
Lord Ahmad said that he hadn’t read the ORR’s report but he would look into it and write to Lord Rosser about it.