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Cost of finding new rail operator 'to top £4m'

12:02, 29 November 2005

MP GWYN PROSSER: "The idea that we will have spent £4.2million processing the competition for the new franchise really does beggar belief"
MP GWYN PROSSER: "The idea that we will have spent £4.2million processing the competition for the new franchise really does beggar belief"

FINDING a replacement rail operator to run Kent’s train services will cost the taxpayer a staggering £4.2million, it has emerged.

Ministers have admitted that since Connex South East was stripped of the south east franchise, the uncompleted process of letting a new franchise to a different company has already cost the taxpayer £3.9million.

But that cost will top £4.2million by the time a contract is officially awarded, according to rail minister Derek Twigg.

Kent Labour MP Gwyn Prosser, who obtained the information, said the figures beggared belief and would anger rail travellers who believed that Kent’s trains had got better since they were taken back under the control of the Strategic Rail Authority and the government.

The Dover MP said: “The irony is that one of the few good news stories we have had about our railway system has been that bringing back South East trains into the public sector has been praised by passengers, improved the service and led to better relationships between the staff and employers.”

“The idea that we will have spent £4.2million processing the competition for the new franchise really does beggar belief. I had no idea that it would be as high as that. If you added on the costs incurred by the would-be operators to the total, it will be astronomic.”

In a statement, the Department for Transport said the costs were “above the norm” because the new franchise incorporated domestic rail services on the Channel Tunnel Rail Link.

The statement said: “The franchise tendering costs are above the norm as the specification of the new franchise was a complex exercise, because of the introduction of the Channel Tunnel Rail Link domestic services. This is the first high speed commuter service this country has seen and it was essential to make sure we got the right services in place for passengers and the best value for money for the taxpayer.”

The statement added that financial, technical and legal advice was needed to ensure rail services “met passenger needs.”

Four companies are bidding for the Kent franchise. A decision is due to be made before Christmas.

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