Beith calls on Government to stop using East Coast rail to subsidise UK network

4.00.00pm BST (GMT +0100) Thu 7th May 2009

National Express and GNER have both found the Government's licence fees for running the East Coast Main Line a serious burden to running the route.

Berwick's Liberal Democrat MP Sir Alan Beith has condemned the Government for continuing to use funds from the expensive East Coast Main Line franchise to subsidise rail travel in other parts of the UK.

The franchise for the East Coast Main Line was won by GNER in 2005 but the company gave up the franchise in 2007 after finding it too expensive to maintain. The franchise was taken over by National Express who agreed to pay £1.4bn, but now National Express has also found the licence fee too expensive and has agreed an outline plan to operate the route on a management contract basis.

Sir Alan Beith said

"It is very worrying that yet again a company has been unable to run the East Coast Main Line, due to the huge premiums the Government has demanded.

"It is time ministers stopped using the East Coast Main Line to subsidise the rest of the railway system, and instead of auctioning the franchise it should be made available on a basis which safeguards the service and enables train operators like GNER and National Express to do a proper job."