11.09.15
Island Line to become ‘separate business’ during next franchise
The Department for Transport wants the next South Western franchisee to come up with ideas for spinning off the Island Line on the Isle of Wight into a “separate and self-sustaining business during the life of the franchise”.
It wants the next franchisee, from 2017, to help sustain the line in the meantime. Network Rail would be responsible for maintaining and improving the infrastructure of the line, as is the case now.
Franchise bidders will be expected to develop proposals on how they plan to reduce the £4m-a-year running costs of the line, which has an annual income of £1m.
The DfT says the next operator may want to find an investment partner, or work with the community and stakeholders to set up a social enterprise to take over the running of the line.
The plans have been released ahead of a formal consultation due later this year for the South Western franchise, currently operated by South West Trains.
However, the latest news at least goes some way to clearing up the confusion over the line’s future from a few weeks ago. At the time, the local authority, following meetings with the Department, thought the line would remain part of the new franchise when it is put to tender.
But DfT officials said “no decisions” had been made about its inclusion in the next South Western franchise, and to suggest otherwise was “inaccurate and misleading”.
Responding to the latest news, Cllr Jonathan Bacon, leader of Isle of Wight Council, said: “On Monday we had a very open and honest discussion with the DfT about Island Line. It was encouraging to hear that the government will include the Island Line in its plans for the next South Western franchise from 2017.
“Government have made it plain that the line is expensive to run. However, the DfT has confirmed that it will work with the council as the government develops its invitation to tender, which will give the best opportunity for the continuation of the Island Line service.”
Rail minister Claire Perry MP added that she was determined that residents, employers and tourists on the Isle of Wight will continue to benefit from the service that the Island Line provides.
“We know that the line is expensive to run and in the current financial climate we need to find ways to bring down the cost to taxpayers, while ensuring that the line continues to meet the needs of the community,” she said.
“Giving local people more say over these services is the best way to make this happen. That is why I want to see stakeholders work with the next operator to come up with innovative solutions that will reduce the burden on the public purse, while safeguarding the line for years to come.”