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West Coast Mainline: Report expected to criticise government Virgin trains to run West Coast Mainline for extra 23 months
(35 minutes later)
The government is expected to be heavily criticised in a report into the collapse of the West Coast Mainline train contract. The government has announced Virgin Trains will run the West Coast Mainline for a further 23 months - hours before a report into the collapse of the line's franchise deal is published.
An inquiry has examined why the £5bn deal collapsed in October.An inquiry has examined why the £5bn deal collapsed in October.
First Group was initially told it had won but the tendering process was halted because the Department for Transport made numerical mistakes. First Group was initially told it had won, but the tendering process was halted because the Department for Transport made numerical mistakes.
Ahead of the report, the government announced that Virgin Rail will run the line for a further 23 month. Monday's temporary deal means Virgin will run trains until 9 November 2014.
The government said the Department for Transport would be able to shorten the 23-month period "by up to six months if a subsequent franchise can be let on a shorter timescale".
The Department for Transport was forced to scrap the original bid to run trains between London, Manchester and Glasgow because of the miscalculations. Three officials are still suspended.The Department for Transport was forced to scrap the original bid to run trains between London, Manchester and Glasgow because of the miscalculations. Three officials are still suspended.
The inquiry into the collapsed tendering process was led by Centrica chief executive Sam Laidlaw.The inquiry into the collapsed tendering process was led by Centrica chief executive Sam Laidlaw.
'Shocking ineptitude''Shocking ineptitude'
The first report from Sam Laidlaw, last October, talked of officials not following their own guidelines, not treating the bidders equally, failing to include inflation in their figures and ignoring warnings of possible problems months before the deal capsized.The first report from Sam Laidlaw, last October, talked of officials not following their own guidelines, not treating the bidders equally, failing to include inflation in their figures and ignoring warnings of possible problems months before the deal capsized.
According to BBC transport correspondent Richard Westcott, this latest, and final report by Mr Laidlaw will cast more light on why it all went wrong, but is unlikely to name names.According to BBC transport correspondent Richard Westcott, this latest, and final report by Mr Laidlaw will cast more light on why it all went wrong, but is unlikely to name names.
That has been left to another inquiry, which has been completed, but will not be made public.That has been left to another inquiry, which has been completed, but will not be made public.
Mr Laidlaw had been due to appear before the House of Commons Transport Select Committee this week, but he will now give his evidence on 18 December.Mr Laidlaw had been due to appear before the House of Commons Transport Select Committee this week, but he will now give his evidence on 18 December.
The general secretary of the Rail, Maritime and Transport Workers union, Bob Crow, said there had been a "reckless high-wire act that has taken the negotiations between Virgin and the DfT right to the very brink".The general secretary of the Rail, Maritime and Transport Workers union, Bob Crow, said there had been a "reckless high-wire act that has taken the negotiations between Virgin and the DfT right to the very brink".
"Because of the shocking ineptitude right at the top of this rotten government, Sir Richard Branson has muscled his way into a monopoly provider position and him and his Virgin Trains shareholders will be laughing all the way to the bank."Because of the shocking ineptitude right at the top of this rotten government, Sir Richard Branson has muscled his way into a monopoly provider position and him and his Virgin Trains shareholders will be laughing all the way to the bank.
"The case for renationalisation of Britain's railways is now overwhelming.""The case for renationalisation of Britain's railways is now overwhelming."