FIRST GREAT WESTERN FRANCHISE STITCH-UP

RMT helpline 0800 376 3706 :: october 2014 :: RMTnews 8 RMT slammed plans for First Great Western to receive yet another five year, uncontested extension to their current franchise. The union described the moves as a “stitch-up which shows that the chaos of rail franchising is continuing to deliver massive rewards for failure to train companies whose only role in life is to rob every penny piece that they can from Britain’s privatised rail network”. RMT has long-argued that the First Great Western franchise is an object lesson in the costly failure of privatisation which has allowed incumbent franchise holders to bully themselves into a monopoly provider position and then hold taxpayers and passengers to ransom. Back in May 2011, First Group announced that it had decided not to take up the option to extend its franchise beyond the end of March 2013 and demanded a longer term deal. By ducking the option to extend the franchise for a further three years FirstGroup avoided having to pay £826.6 million to the government. The company had already received extra subsidies totaling £133 million from the government in 2010 which means that the company has taken the British taxpayer to the tune of almost one billion pounds. However, with the total collapse of the franchising programme in the wake of the West Coast Mainline fiasco in January 2013 the government announced that the competition for the Great Western franchise had been terminated, and that FirstGroup's contract had been extended until October 2013. Then the government made a further announcement that a new franchise had been awarded directly to FirstGroup without competition, and would run for 23 months until September 2015. With First Group sitting back while uncontested contracts are doled out to them the latest reports of a further five year extension will mean that it has operated as a monopoly provider, able to name their price without fear of a contest, for the best part of a decade. The transport privateer is also on course to reap huge financial rewards from the electrification of their routes and the replacement of the intercity fleet without contributing a single penny from their massive rail profits which have been entirely underpinned from the public purse. RMT general secretary Mick Cash said that the billion pound rip off on First Great Western was set to be rolled out for another five years in a move that shows that rail privatisation is a one way ticket to the bank for these companies. “The scandal is reinforced by the fact that the publicly owned Directly Operated Railways, the operators of the successful East Coast route, prepared a plan to take over Great Western when it looked like First were about to walk two years ago. “Instead, the private company has stuck around and can hold the British people to ransom as the monopoly provider. “With the company planning to axe catering services and threatening the role of the guard when the new Inter-City trains are introduced, RMT will continue to fight for jobs, pay and decent working conditions from a company that is clearly awash with money which has no excuse for making any cuts. “The union will also continue to campaign for the public ownership of our railways and an end to the franchising racket,” he said. FIRST GREAT WESTERN FRANCHISE STITCH-UP FGW handed another five year uncontested extension of franchise