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West Coast Main Line First Group deal put on hold | West Coast Main Line First Group deal put on hold |
(about 2 hours later) | |
The deal to hand the West Coast Main Line rail franchise to First Group is to be delayed following a legal challenge by current operator Virgin. | The deal to hand the West Coast Main Line rail franchise to First Group is to be delayed following a legal challenge by current operator Virgin. |
Virgin launched the challenge last week after losing its attempt to continue operating the route. | Virgin launched the challenge last week after losing its attempt to continue operating the route. |
Ministers were expected to sign the deal with First Group several days ago. | Ministers were expected to sign the deal with First Group several days ago. |
But they have confirmed due to the legal challenge the contract has not been signed and "the competition remains live". | But they have confirmed due to the legal challenge the contract has not been signed and "the competition remains live". |
Virgin has run the West Coast Main Line since 1997, but lost out to FirstGroup, prompting it to demand a review. | Virgin has run the West Coast Main Line since 1997, but lost out to FirstGroup, prompting it to demand a review. |
Labour had also urged the government to defer signing the contract so that MPs could examine it. | Labour had also urged the government to defer signing the contract so that MPs could examine it. |
'Significant improvements' | 'Significant improvements' |
And more than 165,000 people have signed an online petition calling for the decision to be reconsidered. | And more than 165,000 people have signed an online petition calling for the decision to be reconsidered. |
In a written ministerial statement transport minister Theresa Villiers said: "As a result of a legal challenge, which the government intends to defend robustly, we have not yet signed the contract with First West Coast, and consequently the competition remains live." | In a written ministerial statement transport minister Theresa Villiers said: "As a result of a legal challenge, which the government intends to defend robustly, we have not yet signed the contract with First West Coast, and consequently the competition remains live." |
But she insisted "the commitments in First West Coast's bid represent significant improvements for passengers and will provide a good return for the taxpayer." | But she insisted "the commitments in First West Coast's bid represent significant improvements for passengers and will provide a good return for the taxpayer." |
Liberal Democrat president Tim Farron called for an emergency Commons debate on the West Coast Mainline franchise. | |
The MP, who represents Westmorland and Lonsdale, said: "The announcement today, that the awarding of the franchise has been suspended due to the judicial review, gives us time to have that debate." | |
But Speaker John Bercow turned down the request. | |
Virgin has made an application for a judicial review of the decision to award FirstGroup the contract, and has lodged papers at the High Court in London. | Virgin has made an application for a judicial review of the decision to award FirstGroup the contract, and has lodged papers at the High Court in London. |
FirstGroup has said it wants to proceed "without delay or disruption" and would continue to prepare to start running the franchise on 9 December this year. | FirstGroup has said it wants to proceed "without delay or disruption" and would continue to prepare to start running the franchise on 9 December this year. |
The franchise, to be run under the name First West Coast Limited, would run until 2026. | The franchise, to be run under the name First West Coast Limited, would run until 2026. |
The Aberdeen-based company already operates a number of rail routes, including Great Western and ScotRail. | The Aberdeen-based company already operates a number of rail routes, including Great Western and ScotRail. |
The West Coast Main Line route serves 31 million passengers a year travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland. | The West Coast Main Line route serves 31 million passengers a year travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland. |
Passenger numbers have doubled since Virgin started running the franchise. | Passenger numbers have doubled since Virgin started running the franchise. |
FirstGroup has said it would introduce 11 new 125mph six-car electric trains on the Birmingham to Glasgow route and provide more direct services between destinations, as well as introduce improved wi-fi and food. | FirstGroup has said it would introduce 11 new 125mph six-car electric trains on the Birmingham to Glasgow route and provide more direct services between destinations, as well as introduce improved wi-fi and food. |
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