Updated: Fears for York rail jobs as new East Coast Mainline operators give no guarantee on HQ - Virgin & Stagecoach promise more York-London trains

York Central MP Hugh Bayley said he understood that while new operator Virgin East Coast would keep operational staff in the city, it had not yet decided whether to locate the HQ there.

He said he was 'appalled' by its possible loss, and had written to consortium bosses Sir Richard Branson and Sir Brian Souter to ask for a meeting to discuss the matter.

MPs Hugh Bayley, left, and Julian Sturdy, right, have both raised concerns

York Outer MP Julian Sturdy said he was 'deeply concerned' about the growing uncertainty surrounding the headquarters and said he would raise it as a matter of urgency with Rail Minister Claire Perry.

He said: "York has been at the very centre of the British railway industry since the Victorian era and a dedicated headquarters has existed in York for as long as I can remember. It simply does not make sense for York to lose this historic asset."

Cllr David Levene, cabinet member for transport at City of York Council, said he hoped Stagecoach and Virgin Group would locate their headquarters in the city, following on from the precedent set by previous operators.

Current operator East Coast, whose HQ is in Skeldergate, currently employs almost 200 people in the city.

When The Press asked Stagecoach today whether the HQ would be in York, a spokeswoman would only say that the business would ‘always have a base and a significant presence in York,' adding: “We’re looking forward to meeting the staff there and outlining our plans for the future.”

Rail minister Claire Perry at York Station today. Picture: Nigel Holland

The Rail Minister Claire Perry, speaking today during a whistlestop visit to York station, said: "I think the issue is not so much where the HQ is as where the bulk of the operational staff are."

She said the new eight-year franchise was 'exciting news' for staff and passengers, bringing new trains, more seats, improvements to stations and more frequent services as well as more than £3 billion pounds in revenue to the Government.

"These are two really strong British companies which will deliver a transformation of services for passengers across the network, with new seats and new trains," she said.

She revealed that the service would be branded Virgin East Coast, even though Virgin has a ten per cent stake in the consortium, because Virgin had a strong brand image which was readily recognised by the public.

She said a new National Academy for Rail Professional Education was being planned in York as well as Derby and London which would help to encourage young people into the growing industry. "I want to see young people want to be train drivers, girls as well as boys," she said.

Asked whether Virgin's involvement in both the west coast and east coast routes from London to Scotland created monopoly concerns, she said such issues had been examined closely by the competition authorities.

Trains will be branded as Virgin East Coast, but Stagecoach will own 90 per cent of the consortium

Under the deal, three trains an hour will operate between London and York from May 2019, with an extra train every two hours from May 2020. An extra six trains a day will operate between London and Harrogate, via Horsforth, from May 2019.

There will also be a complete refurbishment of the existing fleet, better wi-fi connections and onboard catering, improved ticket offices and 170 new ticket vending machines, more than 500 new car parking spaces and 411 extra cycle spaces.

Transport Secretary Patrick McLoughlin said: “This is a fantastic deal for passengers and for staff on this vital route. It gives passengers more seats, more services and new trains."

Martin Griffiths, Chief Executive of Stagecoach Group, said: "We have some fantastic ideas to deliver a more personal travel experience for customers. 

"Investing in the committed people who will make that happen is a big part of our plans, giving opportunities for them to develop and grow into more senior roles. 

"At the same time, we have developed major programmes to help young people, communities and small businesses along what is one of Britain's major rail routes."

Ms Perry said: "There are two really strong British companies which will deliver a transformation of services for passengers across the network, with new seats and new trains," she said.

The announcement includes £140 million of proposed improvements trains and stations across the route.

The consortium will pay £3.3 billion for the franchise, which it is due to take over on March 1 next year.

Reaction

James Alexander, York council leader and chair of The Consortium of East Coast Main Line Authorities (ECMA): “We welcome Stagecoach and Virgin Group as the new operator of the Inter City East Coast Franchise and look forward to working together to discuss how best to improve the service to benefit east coast rail users."

Susie Cawood, chair of York Chamber of Commerce: "Overall it looks to be a good deal and will end a period of uncertainty. With demand likely to continue to increase it is good to see a commitment to additional services, more seats and reduced travel times. In addition the investment in stations and infrastructure is welcome although long overdue."

Jonathan Tyler, Green Party candidate for York Central: "The Government has ignored a clearly-expressed wish for the East Coast line to remain in public ownership and instead will hand its profits to shareholders."

Rachel Goddard, chair of York Professionals: “A better rail service can only be beneficial to York businesses and for jobs.  As a growing economy we need good fast links with London and I am pleased to hear services are being improved and expanded. I do hope that Virgin East Coast will consider York as the right location with the right skill base for its new headquarters.”

Kate McMullen, Head of Visit York: “We will be delighted to work with Inter City Railways in marketing this key route between London and Edinburgh. York is one of the most visited destinations on the East Coast line and we look forward to encouraging yet more of our visitors from along this route to choose to travel by train.”

 
Passengers give their view
Mike Laycock asked passengers at York station for their reaction to the franchise news

Dariush and Perdy Kamali: “If they will keep prices down and provide more frequent services, that can only be a good thing.”

Alan and Kate Hudson: “It’s absolutely appalling. East Coast is a superb service as it is.”

Charlotte Brannan, above: “I think it’s great.”

The history of troubled East Coast franchise

CONTROL of the East Coast mainline has changed several times since it was first privatised in the 1990s.

Two separate companies ran into serious financial difficulties as they struggled to meet huge franchise payments to the Government.

The first franchise was awarded to Sea Containers, who operated it as GNER from1996 until 2006.
The firm was initially very successful, making significant improvements to the service, but it got into increasing financial difficulties after winning the right in 2005 to continue running the trains from York to London and Edinburgh.

In December 2006, the Department for Transport  decided to strip Sea Containers of its franchise, but GNER was allowed to continue running services until the Government selected a new franchisee.
In 2007, the franchise went to National Express, amid heavy speculation the group had also paid too much for it, and it too began to run into financial problems.

The firm pulled out in 2009, at which point the Government seized control of the route and set up the nationalised company East Coast under managing director Karen Boswell.

East Coast has continued to run the service ever since, winning plaudits for improvements to customer service, which sparked calls by unions and some politicians to remain under public control.

But the coalition Government decided to press ahead with a re-privatisation of the route, culminating in the decision to hand control to the consortium of Virgin and Stagecoach, which will take over the running of the line next year.

All the various train operators ran the route from York, initially from traditional railway offices in Station Rise, and later from new riverside offices in Skeldergate. The question now is whether the new operators will maintain the tradition by keeping the HQ in York.