Crossrail prepares for renationalisation (by other countries)

Over half of the bidders to run the new railway are foreign nationalised rail firms.

TfL has announced the four companies it has approved to bid for operational control of Crossrail. The company which wins the franchise will run the train services and stations, as well as providing staff, for the London metro rail service, which is due to open with a partial service in May 2015.

MayorWatch reports:

The companies shortlisted to bid are: Arriva Crossrail Limited, Keolis/Go Ahead, MTR Corporation (Crossrail) Limited and National Express Group PLC.

Just to break that down a bit: Arriva is a wholly owned subsidiary of Deutsche Bahn, which is the German national rail company and is majority-owned by the German government; MTR corporation is the Hong Kong national rail company and is majority-owned by the Hong Kong government; and Keolis is majority-owned by SNCF, the French national rail company which is wholly owned by the French government.

National Express and Go Ahead, the other half of the Keolis/Go Ahead consortium, are both UK-headquartered FTSE 250 companies.

In other words, fully half of the companies which are bidding to run Crossrail are the nationalised rail companies of other countries; and another quarter of the bidders is a joint venture involving the nationalised rail company of another country.

That follows the creation of London Overground Rail Operations Limited, the company which runs the London Overground concession. That franchise, which is consistently one of the best, or the best, on the whole National Rail network, is run by a consortium of Arriva and MTR under the control of TfL.

Nationalisation: apparently quite good in practice?

Original post, "Why Crossrail's new roundel matters more than it seems", 13 May 2013 13:54

Transport for London revealed further information about how the Crossrail franchise is to be run yesterday, confirming that it would be run as a managed concession in the style of the London Overground.

TfL will stipulate the services which must be provided, as well as owning the trains and track. The private company which wins the franchise will be responsible for running the train services and the crossrail-specific stations along the route, as well as providing staff, but it will not be given the freedom, which most national rail franchises have, to dictate hours of operation and staffing levels.

The news comes as TfL announced the branding that Crossrail would receive as part of London's transport mix; the service will get its own roundel, in a fetching purple shade (that's it above). As the London Reconnections blog points out, that's a more notable piece of news than it first appears:

As Crossrail’s TBMs tunnel beneath London, and its stations begin to take shape (more on both of those shortly) it is easy to forget that there are still some important questions that remain to be answered politically and strategically about the line.

The funding question may have dominated the discourse whilst the line pushed for approval, but it mustn’t be forgotten that Crossrail will also push well beyond London’s borders. In doing so, it will take TfL—and more importantly their authority and systems—with it. At a time when TfL and the DfT have yet to agree on what role London’s transport authority will have with regards to franchising, that’s potentially a very hot political potato.

The most similar existing train franchise to Crossrail, the Thameslink service, is a typical national rail service, run by the First group. As such, First runs its stations, Oyster cards are not accepted outside of travelcard zones 1-6, and TfL has very little say over most of the operations.

Owing to the devolved nature of London transport, the capital is slowly building a different model of how to run a suburban rail system to the one preferred by the Department for Transport. There is still hefty private-sector involvement, but the planning is far more centralised, and, cable-car aside, TfL has seen far fewer missteps than its competitors.

Earlier this week, the Department for Transport was forced to back down on a plan to increase commuter pricing even more than it currently does. The Financial Times reported on Sunday that:

The government was also urged just weeks ago by the Commons’ transport committee to rule out a shake-up of fares.

The committee said it feared that proposals for more “flexible ticketing” would end up being a “tax on commuters” who had no choice over when or how they travelled. The committee said there were limits to what the policy could achieve: “Many lower-paid workers have no choice but to travel at peak times,” the report said.

The first Crossrail services will run from May 2015 between Liverpool Street and Shenfield, Essex. Commuters on that line will see double the number of trains per hour, and new rolling stock from 2017. For them at least, the change is likely to be undeniably positive.

Image: Transport for London

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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