The East Coast rail route between London and Scotland has returned to private hands after more than five years in the public sector.
Services on the line have been operated by a Department for Transport (DfT) controlled company since November 2009.
From Sunday they are being run jointly by Virgin and Stagecoach, under the name Virgin Trains East Coast.
The DfT said the new franchise would mean "the best deal for passengers", but Labour criticised the move.
When franchise holder National Express pulled out in November 2009, the then-Labour government took over the running of the line.
But the current coalition government had always intended to return it to the private sector.
A Department for Transport spokesman said: "The skills and experience that the private sector provides drives forward innovation and investment, and has helped to transform our rail network into a real success story.
"It will provide more seats, more services, new trains and over ?140m of investment along the route.
"In addition, more than ?3bn will be paid to taxpayers."
The ?140m will be invested over eight years, with the ?3bn coming from the money Virgin Trains East Coast is paying for the contract.
If I'm reading this right, the government is saying that Vermin will pay ?3 billion for the contract and be given ?3 billion back? So it's costing them ?140 million in all for an asset that was making one hell of a profit for the treasury and providing a good service.
Did I miss something there, or should we be looking at which MP's have shares in the company?
Services on the line have been operated by a Department for Transport (DfT) controlled company since November 2009.
From Sunday they are being run jointly by Virgin and Stagecoach, under the name Virgin Trains East Coast.
The DfT said the new franchise would mean "the best deal for passengers", but Labour criticised the move.
When franchise holder National Express pulled out in November 2009, the then-Labour government took over the running of the line.
But the current coalition government had always intended to return it to the private sector.
A Department for Transport spokesman said: "The skills and experience that the private sector provides drives forward innovation and investment, and has helped to transform our rail network into a real success story.
"It will provide more seats, more services, new trains and over ?140m of investment along the route.
"In addition, more than ?3bn will be paid to taxpayers."
The ?140m will be invested over eight years, with the ?3bn coming from the money Virgin Trains East Coast is paying for the contract.
If I'm reading this right, the government is saying that Vermin will pay ?3 billion for the contract and be given ?3 billion back? So it's costing them ?140 million in all for an asset that was making one hell of a profit for the treasury and providing a good service.
Did I miss something there, or should we be looking at which MP's have shares in the company?
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