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| East Coast rail franchise increases return to taxpayer | East Coast rail franchise increases return to taxpayer |
| (about 2 hours later) | |
| The publicly-owned railway company East Coast returned almost £220m to the taxpayer last year, according to its annual results. | The publicly-owned railway company East Coast returned almost £220m to the taxpayer last year, according to its annual results. |
| Directly Operated Railways - which was set up by the government in July 2009 to run the East Coast franchise - has announced a post-tax profit of £6.2m. | Directly Operated Railways - which was set up by the government in July 2009 to run the East Coast franchise - has announced a post-tax profit of £6.2m. |
| Its profit before tax and fees to the Department for Transport was £225m, an increase of 8% on the year before. | Its profit before tax and fees to the Department for Transport was £225m, an increase of 8% on the year before. |
| The franchise is due to be re-privatised in March next year. | The franchise is due to be re-privatised in March next year. |
| Labour has said it would allow public-sector operators to challenge private firms for rail contracts, if it wins the general election in 2015. | Labour has said it would allow public-sector operators to challenge private firms for rail contracts, if it wins the general election in 2015. |
| DOR took over the East Coast franchise when National Express's contract was terminated in November 2009, because of financial difficulties. | DOR took over the East Coast franchise when National Express's contract was terminated in November 2009, because of financial difficulties. |
| East Coast runs railway services along the 936-mile line, which runs from London to the north of Scotland. | East Coast runs railway services along the 936-mile line, which runs from London to the north of Scotland. |
| Turnover for 2013-14 was £720m, with £654m of that coming from passenger income. | Turnover for 2013-14 was £720m, with £654m of that coming from passenger income. |
| In total, 19.9m journeys were made, an increase of 4.5% on 2012-13. | In total, 19.9m journeys were made, an increase of 4.5% on 2012-13. |
| The chairman of DOR, Doug Sutherland, said: "Our financial performance has been good throughout the year, with £216.8m provided to the DfT in premium and dividend payments, up from £202.8m the year before. | The chairman of DOR, Doug Sutherland, said: "Our financial performance has been good throughout the year, with £216.8m provided to the DfT in premium and dividend payments, up from £202.8m the year before. |
| "The business plan for the remainder of the franchise will see the good work continuing, with the twin aims of ensuring a successful transfer of the business back to the private sector in good condition, and maximising the value of the franchise achieved by the government and the taxpayer." | "The business plan for the remainder of the franchise will see the good work continuing, with the twin aims of ensuring a successful transfer of the business back to the private sector in good condition, and maximising the value of the franchise achieved by the government and the taxpayer." |
| The acting general secretary of the RMT union, Mick Cash, said the franchise shouldn't return to the private sector next year. | |
| "Despite the continued stunning financial and operational success of the publicly-owned East Coast service, this right-wing Government are hell bent on smashing it up and taking another gamble on a private operator," he said. | |
| A spokesman for the Rail Delivery Group, which represents train operating companies, said private firms also returned large sums to the taxpayer. | |
| "It remains the case that East Coast is just one of a number of operators making payments to government," he said. | |
| "Latest figures for 2013-14 show the biggest payment was made by private operator South West Trains, which paid over £300m." |