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Business chiefs welcome train route takeover

DONCASTER'S business leaders say the Government is on the right lines with its takeover of train services on the main route through the borough

Doncaster Chamber of Commerce has welcomed Government intervention to guarantee the effective delivery of East Coast Mainline services between London and Scotland and protect the jobs of Doncaster train and station staff.

Prime Minister Gordon Brown yesterday committed the Government to ensuring the service continues with its existing staff.

Chamber chief executive Stephen Shore said: "The temporary nationalisation of the East Coast main line will hopefully safeguard Doncaster's exceptional transport links with the capital for many years to come. We are less than an hour and a half away from London and we need to make this work to our advantage.

"Together with our developing road and air infrastructure, the East Coast main line gives Doncaster a competitive advantage over other Yorkshire cities which we are very keen to maintain as it helps make us more attractive to inward investors and supports the business tourism economy.

"Our concern is not who operates the East Coast main line service, but that the service is world class and meeting the requirements of the local business community.

"In time, I hope the Government will find a sustainable business model for this route and place it back in the hands of the private sector. Local businesses overwhelmingly want the East Coast mainline to be improved for the benefit of Doncaster's economy and communities and we hope Government gets it right this time when they select the operator."

In the Commons yesterday, Mr Brown said the Government had an "overriding obligation" to ensure continuity of service on the East Coast main line and would temporarily renationalise the route, which was being run at a loss by transport group National Express.

He told MPs that a publicly-owned company, to be called the East Coast Main Line Company, was being set up to take over the service and existing staff and assets would transfer over to that.

The collapse of the franchise could cost taxpayers hundreds of millions of pounds, it was claimed today. The franchise will pass into public ownership later this year and a new tender competition will be held from the end of 2010. But fears are mounting that taxpayers will be landed with a huge bill.

National Express had agreed to pay the government 1.4billion over the lifetime of the franchise but was then hit by stalling revenue.

But rail industry expert Roger Ford, who writes for Modern Railways, said the Government would get "well under" 1bn for re-letting the East Coast franchise, leaving a large shortfall.

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