FirstGroup calls for government to 'encourage' open access as it argues against clampdown

FirstGroup has called on the government encourage open access as it begins to take over train operating companies.

The operator made the call in its new report, which was published on Monday, as it began its defence of open access firms.

In Moving forward together: Why open access is essential for a better railway, FirstGroup made the call for the government to appreciate there was “nothing to fear from a thriving open access sector…it must be encouraged”

It added: “Open access is a vital part of our rail map: it is imperative this new Government embraces open access and removes barriers to new services. Our mission is to deliver more open access, alongside industry partners, and together grow rail in Great Britain.”

The report also outlines four recommendations: protect the Office of Rail and Road’s independence; speed up the review process of track access bids; ensure open access operators remain part of the network; learn from Europe.

It comes four months before the Department for Transport begins taking over train operating companies, and two weeks after Transport Secretary Heidi Alexander suggested she wanted to make it harder for open access operations to be approved by ORR. In her letter to Chair Declan Collier, she voiced concerns about revenue abstraction, how much open access firms pay in terms of costs and taxpayers making up any shortfalls.

FirstGroup currently has four applications with ORR; to extend its Lumo services from Edinburgh to Glasgow Queen Street and launch new services between London King’s Cross and Sheffield via Worksop, between London Euston and Rochdale via Warrington Bank Quay and Manchester Victoria, and between London Paddington and Paignton via Bristol.

Speaking at the launch event in London on January 20, First Rail’s Managing Director, Steve Montgomery, said that to reach these new destinations it was “important we have a regulator that is able to regulate and it has the ability to look, as it does, and evaluate each of the propositions”.

“A strong regulator is something we support and would like to see maintained in the future, whatever the future holds in terms of GBR (Great British Railways).”

FirstGroup argues that its Lumo operation on the East Coast Main Line has grown passenger numbers on the route for both it and LNER.

It says that since launching in 2021 an additional 6.2 million journeys have been made on the ECML, with 3.9m of those being on its services.

Steve Montgomery, Managing Director of First Rail, said: “Open access has a strong and successful history over the past 25 years, delivering millions of reliable and affordable passenger journeys, offering choice and competition, investing in new rolling stock and supporting the running costs of the rail network.

“Data demonstrates open access grows the railway overall. By offering competitive fares at alternative times and stopping at under-served destinations, open access inspires more people to use trains rather than cars and planes.

“Since Lumo launched in 2021, an increase of more than six million more passenger journeys has taken place on the East Coast Mainline than when it was operated by LNER alone.

“As the Government delivers its rail policy over the coming years, I am proud First Rail is making the case for open access, investment and innovation on the British rail network.”

Speaking at the launch event in London he added: “We recommend the UK has to learn the lessons from Europe. As, unfortunately, we go back to nationalisation, Europe moves to liberalisation, and we see a number of open access operations across Europe now.

“The decision has been made in the UK in terms of national rail, but open access should not be seen as something that should be tied down. So it’s really important we weave that opportunity.”

The report cited NTV’s Italo brand and Ouigo Espana as successful open access operations in Europe that have led to cheaper feares and increased passenger numbers.