NATIONAL EXPRESS EAST COAST MAIN LINE FRANCHISE

That this House is gravely concerned that a termination of the One East Coast Main Line rail franchise by the operator, National Express, could leave a billion pound plus hole in Government finances, since under the franchise National Express was due to pay the Government £1.4 billion in premium payments up to 2015; recognises that privatisation has failed the East Coast Main Line for a second time after the previous collapse of the GNER franchise; notes that a publicly-funded modernisation of the East Coast Main Line was followed by years of public subsidy to support private operators; is appalled that the National Express Group paid out nearly £60 million in dividends to shareholders in 2008 and attempted to protect revenue by increasing fares and slashing jobs to protect profit margins; believes there must be no renegotiation of rail franchises and that if franchise commitments cannot be met they should be taken into public ownership; urges the Government to prevent a defaulting operator holding any other franchises or bidding for other rail contracts; and calls on the Government to hold an urgent debate on the future of rail franchises and whether a publicly-owned railway would offer a better deal to taxpayers and passengers alike.