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RMT helpline 0800 376 3706 :: september 2020 :: RMTnews
5
R
MT has warned that plans
to slash staffing levels on
Hull Trains by the contractor
Greens in the midst of the
COVID-19 pandemic are a
recipe for disaster for both
staff and passengers alike and
should be halted as a matter
of urgency.
Proposals received by the
union this week would more
than halve both the day shift
cleaning teams and the over-
night deep cleaning
operations.
RMT has pledged to fight
the cuts and says that the
plans expose again the
fragmentation on our railways
where open access providers
like Hull Trains have been cut
out of the Emergency
Measures Agreements applied
to franchise holders. The
union says that the current
chaos reinforces the need for
public ownership.
RMT senior assistant
general secretary Mick Lynch
said that the plan to slash
cleaning staff numbers on Hull
Trains by more than half on
both night and day shifts in
the midst of the COVID-19
pandemic is grossly
irresponsible and should be
reversed.
"RMT will fight these plans
which once again expose the
chaos on our fragmented
railways and reinforce the
case for public ownership,” he
said.
Stock companies (the
ROSCOs).
On April 7, appearing in
front of the Transport Select
Committee, Minister of State
for Rail Chris Heaton Harris
was asked whether the
government was covering the
costs of leasing trains from the
ROSCOs or whether the
companies had agreed to
waive those charges for the
duration of the crisis. Heaton
Harris said ‘Currently, we are
picking up the tab.
Grahame Morris MP
subsequently tabled further
questions in Parliament asking
how much the ROSCOs were
receiving.
On June 2 the Minister
answered that “Train operating
companies are continuing to
pay the contractually agreed
rental cost for rolling stock as
they were prior to the
Emergency Measures
Agreements.” In a further
answer he confirmed that
“Rolling stock contracts are
fixed over the term of the
original franchise and were
competitively procured by the
operators; the same payments
will continue through the
period of the EMA”.
While the government
urges the train operating
companies to look for
efficiencies and possible
savings, it is paying out in full
to cover the lease charges
paid to the ROSCOs. As the
ROSCOs are forced to buy
new trains, so their leasing
charges rise. Last year, they
received a record £2.45 billion
from the TOCs.
A new RMT report ‘Picking
up the Tab for Trains’ showed
how these rolling stock
charges represent a growing
proportion of the TOCs costs
(around 17 per cent), a cost
that’s being passed on to the
taxpayer through franchise
subsidies. With the advent of
the EMAs that cost is now
being directly and
transparently paid by the
government. And the ROSCOs
will be doing very nicely out of
this. In 2018, the last year
where we can see the
accounts of all three ROSCOs,
they made profits before tax of
£241 million and paid out
dividends to the asset
management funds who own
them worth £267 million. As
an earlier RMT report ‘The
Rolling Stock Racket’ showed,
much of this money is then
shuffled offshore through tax
havens in Luxembourg and
elsewhere.
While rail workers have
risked their lives to come into
work and keep services
running throughout the
pandemic, a few big
businesses have been busy
with the government
rearranging the deck chairs so
that they can continue raking
in public money and turning it
into shareholder dividends.
The EMAs may be here to stay
in the short term, but the
battle is on to build a safe,
affordable, accessible and
integrated railway that works
for British people.
HULL TRAINS CUTS CLEANING
ROSCO PROFITS AND DIVIDENDS FOR THE FINANCIAL YEAR
ENDING DECEMBER 2018
Rolling Stock company Profit Before Tax Dividend
Porterbrook* £81,659,000 £80,000,000
Angel Trains** £128,900,000 £147,000,000
Eversholt*** £30,469,000 £40,100,000
Total £241,028,000 £267,100,000
*Porterbrook Holdings 1 Ltd, Annual Report and Financial Statements, Year
Ended December 2018
**Angel Trains Ltd, Annual Report and Financial Statements, Year Ended
December 2018
***Eversholt UK Rails (Holding) Ltd (Security Group), Annual Report and
Financial Statements, Year Ended December 2018.
Grahame Morris MP