An AM has called for consideration to be given to running Welsh railways on a not for profit basis. Plaid Cymru AM Chris Franks made the call during First Minister’s Questions in the Senedd.
Chris Franks AM said: “There were unacceptable delays to rail services and a lack of information when we experienced a cold snap late last year. I understand that in Cardiff Central station, for example, people were left waiting for two hours without information, only to discover that there was to be no train. This caused huge difficulties. I am calling on Arriva Trains Wales to take its responsibilities more seriously.
“In future, railways maybe better run on a not-for-profit model when the present franchise ends. Improving infrastructure, including rail, is crucial to the development of the Welsh economy – to create the successful, prosperous and green nation that we know Wales can be. This proposal could be a further step toward creating a national transport system for Wales. In the challenging times ahead, we believe it’s vital that we look to look to Wales for ambitious solutions to create the successful nation that we all want to see.”
The First Minister Carwyn Jones said that it is important that Arriva Trains Wales comes up to the mark in terms of its performance. Although he stated that it had a reasonably good record in terms of punctuality.
Plaid AM Chris Franks argues that the management of Welsh railways should be put in the hands of a ‘not for profit’ company when the current franchise contract with Arriva Trains Wales ends in 2018. Most of the preparation work for the refranchising will be undertaken during the next Assembly term.
In 2003 a 15 year franchise for running railway services in Wales was awarded to Arriva Trains Wales. Welsh Ministers and the UK Department for Transport are co-signatories on the franchise which is worth around £165 million a year to Arriva Trains Wales.
Arriva Trains Wales is currently making a healthy profit from this agreement. Despite this, most demand for additional rail services are met directly by Welsh Government funds and are not funded by Arriva Trains Wales.
Mr Franks said consideration should be given to ensuring the transfer of control over the franchise to Welsh Ministers in order to put the franchise in the hands of a ‘not-for-profit’ company. This would allow the new company to reinvest its profits in developing better and more train services for people, instead of the current model where the majority of profits are returned to Arriva Trains Wales’ shareholders. This could release extra money to invest in an improved All-Wales Rail Service which could amount to between £100m – £120m over a decade.
