£130 million taxpayer rip-off

RAIL UNION RMT today slammed the direct award of a monopoly rail contract for London Midland to operate rail services in the West Midlands between April 2016 and October 2017 at a cost to the taxpayer over the 18 months of £130 million in direct subsidies which will help underpin state rail operations in France.

The London Midland brand is part owned by French state railways through their subsidiary Keolis.

RMT General Secretary Mick Cash said:

“Here we go again – the direct award of a monopoly contract to a private train company which will cost the taxpayer £130 million in corporate welfare payments over just 18 months.  There is no austerity when it comes to government ladling out public money to subsidise the private train companies who are bleeding our railways dry.

“Once again we see all the usual bogus promises of improvements to the passenger experience when really what this is all about is a one way ticket to the bank for London Midland and their shareholders.

“Not one ounce of consideration was given to the British public provider option – proving again that this Government are against state ownership of our railways unless it’s the French, German or Dutch state looking for a bung from the British taxpayer to prop up their own operations.”

 ENDS