FirstGroup has submitted its response to the consultation on planned railway reforms, ahead of the forthcoming Railways Bill, which will enable the establishment of Great British Railways (GBR).
FirstGroup has welcomed reforms to put passengers at the heart of the Government’s plans for the rail sector and, overall, the Group is supportive of the creation of GBR to deliver a reformed railway following the Government’s initial legislation on public ownership last year.
However, in its submission, the operator has warned about the risk of adverse monopolistic impacts a singular GBR operator may create. To put the interests of passengers first, the new arrangements must retain the ability to procure from the private sector and encourage private sector investment. This will encourage competition with publicly owned operators, as is the case in European markets such as France and Spain and help to secure the best services for passengers.
To champion passenger interests and ensure appropriate oversight of GBR’s activities, FirstGroup has said an independent regulator must be empowered to adjudicate fairly and impartially. This will help ensure popular open access operators, which have been a hugely successful aspect of the rail industry over the past 25 years, can continue to grow, delivering increased passenger choice, cheaper fares and increased connectivity across the UK.
Lumo and Hull Trains, alongside other open access operators, have successfully connected previously under-served places and provided additional capacity which helps drive more people towards rail and away from less sustainable forms of transport.
To support delivery of the legislation later this year, FirstGroup has offered practical and deliverable policy recommendations which will benefit customers and communities. They would also allow the Group to further develop its contribution to the growth of the national and regional economy through its successful open access rail operators and affiliate businesses.
Commenting, First Rail Managing Director Steve Montgomery said:
“Enhancing rail connections is critical to boosting economic growth in the UK.”
“We have long called for reform of the railway sector, and we are keen to see new arrangements introduced which consider the customer and commercial elements of rail, alongside measures on infrastructure.
“Delivered effectively, reform will ensure the industry can grow passenger numbers, generate greater revenues and develop the value of rail in a customer-focused, dynamic and efficient environment. To do so, it is essential the Government considers the need for appropriate protections and controls through independent regulation of GBR, private sector investment and open access operations.
“This will ensure open access operators can deliver customer benefits and drive modal shift, while playing a role in ensuring the wider railway offers best value for the taxpayer.
“Across Europe, we see private sector operators co-existing with state-owned services. Such competition is healthy, necessary and in the interests of passengers. It is proven to grow the overall rail market, and it is vital the GBR model allows for the same in the UK.”
FirstGroup’s submission can be found here.
Image credits: First Group
