Heidi Alexander quizzed by MPs over South Western Railways blunder

MPs have quizzed Transport Secretary Heidi Alexander after national media reports of a rail nationalisation blunder that is claimed to have cost taxpayers £250 million.

A group of Liberal Democrat MPs wrote to the Transport Secretary, after it emerged that civil servants had negotiated an increase in costs for leasing South Western Railway’s train carriages as part of discussions on renationalising the operator.

At a House of Commons Transport Select Committee earlier today, Alexander said that “she did not recognise” the figures that had been reported but refused to be drawn on what the fee for leasing the rolling stock would be once SWR came under control of DFTO (Department for Transport Operators).

She added “I do think the way that the rolling stock leases that were organised by the previous government was an approach of stepping back and seeing what happens and that is not a mistake were going to make again.

“Typically, these conversations happen two years in advance, so the previous government could have started negotiations earlier.”

RAIL has reached out to the Conservatives for comment.

Negotiations between SWR, the rolling stock stock owners Rock Rail, Angel Trains and the Department for Transport began in December and are still ongoing.

The Liberal Democrat MPs have demanded that DfT outlines the true cost of the deal with SWR and to confirm the previous costs as well as to also confirm whether or not conversations have begun with Greater Anglia and Trenitalia c2c, which are due to come into public ownership this year.

In the letter which has been seen by RAIL, it says, “The Government has frequently justified nationalisation on the grounds it will deliver better value for money for British taxpayers. We are consequently concerned by recent media reports indicating missteps in the run-up to SWR’s nationalisation which have negatively impacted the public purse,”

In the transport select committee meeting, when asked, Alexander would not confirm whether the reported extra costs would be covered by an increase in rail fares.

“When setting rail fares, we will always look to do what is right for passengers and the travelling public as well as what is right for the wider rail network needs.”

The Transport Secretary also confirmed that she had asked the managing directors of SWR’s parent companies MTR and First Group for a meeting “as a matter of urgency” to discuss its plans on how it is addressing the problems with SWR’s rolling stock before it comes into public ownership on May 25.