Shanklin train line

Island Line: Finney / Pugh exchange: Does Gov subsidise? #6

Last week OnTheWight ran the first in series of email exchanges between Nick Finney, Isle of Wight Conservative MP Andrew Turner‘s transport advisor, and David Pugh, who is connected with the Keep Island Line in Franchise (KILF) group.

As mentioned before, the Island Line franchise is a complex subject, so we feel that it’s only right that the exchanges are published unedited, so details are not missed out.

Here’s the sixth exchange that took place last week. The email is from Nick Finney in response to David Pugh‘s earlier email.


Dear David

Since you wish to get into the esoterics of when is a subsidy not a subsidy, lets examine your proposition that the Island line gets a free ride on the back of a profitable franchise. We know that SWT have received revenue support -subsidy for about 5 years, the last figure for 2014 being £161.4 million and the cumulative revenue support being over £500 million for SWT alone. That is taxpayers money.

Now we come to your proposition that the Island line receives not one penny of public subsidy. When sophisticated bidders for rail franchises do their due diligence they look in detail if they are new bidders at the parts of the Network which lose money. They will then factor that into their bid price. And they will judge what chances there are that they can improve their profitability or whether it’s just an obligation they need to meet to keep it going on a make and mend basis. All bidders will DISCOUNT the anticipated losses in their bid to Government. So the Government gets a lower premium price than it would otherwise expect. So the taxpayer is short changed again.

We also know that there is no incentive on the part of the successful bidder to invest in the loss maker because the duration of the Franchise is too short to make a return on the investment. Stagecoach made this very point to GIBB consulting on the part of the SRA in 2001. On page 9 of the report “Stagecoach confirmed that there had been no significant track renewals since privatisation (in 1993). They explained that there is little incentive for the TOC with a short term Franchise to do much more than ensure that the existing track is maintained in safe condition rather than develop a programme of long term “steady state” track renewals when such assets have a 60 year life.

GIBB go onto say that “whilst it is acknowledged that the railway could continue in its present form with renewals where necessary, investment solutions may involve light rail/ tram technology.

And by the way, your employers or not employers Wightlink,

“considered that the existing track infrastructure does not allow sufficient flexibility in time tabling to enable robust connections to be provided between train and ferry. Wightlink sailings are timed to connect with SWT key London Arrivals and departures and this, together with the current Island Line 20/40 minute irregular service pattern, means that every other connection is very tight. Even when running on time the elderly, infirm and those with heavy luggage can struggle. Wightlink believe that connection margins should allow in the region of at least ten Minutes for interchange.

ALL THIS EXAMINED IN DETAIL 14 YEARS AGO AS WELL AS EXTENDING THE SYSTEM THROUGH LIGHT RAIL TO OTHER PARTS OF THE ISLAND. WHAT HAS HAPPENED INCLUDING UNDER YOUR STEWARDSHIP. PRECISELY NOTHING.

AND YET YOU AND YOUR COLLEAGUES PRETEND THAT WE JUST NEED TO SIGN UP FOR ANOTHER 7 YEARS OF DETERIORATING TRACK AND ROLLING STOCK WITHOUT ANY EFFORT BEING MADE TO INNOVATE, MODERNISE AND SERVE THE NEEDS OF THE ISLAND IN THE 21st CENTURY.

As for Stuart Blackmore’s latest contribution, well even those who support the KILF bandwagon must blush at his description of the present state of the railway As “running on time at a decent price which is reliable” What dismal and inaccurate aspirations.

Closed for 6 weeks for urgent embankment repairs. A timetable that can’t even properly connect to its mainland connector the Fast Cat at Ryde Pier. Perhaps we had better pass a veil over the revenue drop even though passengers are alleged to be the same numbers. Because of ‘Elf and safety considerations’ which prevent guards moving from one carriage to another, paying passengers seem to have dropped from 900,000 odd thousand to 800,000 in that same year. It couldn’t possibly be that there is fare evasion going on surely?

What does it take to understand that the Island actually needs to take serious note of the longstanding advice that Andrew Turner YOUR MP has given for over a year which is to raise your aspirations.

He wants everyone to start to take responsibility for the quality of services and show some leadership which will encourage the Government to help the process of improving efficiency, cutting costs, improving passenger experiences and generally showing that the Island can step up to the mark.

Warmest regards Nicholas Finney

Image: Bods under CC BY 2.0