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Author Topic: Train Leasing Inquiry To Look At DfT Rules  (Read 565 times)
Lee Fletcher
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« on: December 21, 2007, 12:47:28 PM »

The Competition Commission's inquiry into the alleged anti-competitive activities of the trio of banks which between them own the country's train carriages was widened yesterday to include the Department for Transport (link below.)
http://news.independent.co.uk/business/news/article3266623.ece

In what it called an "Emerging Thinking" report yesterday, the watchdog said it would look into allegations by the Roscos that the DfT's franchising system was "too prescriptive and can have the effect of restricting competition by giving train operating companies little choice of which rolling stock to use", said Diana Guy, head of the inquiry. "Whilst we realise that the DfT has reasons for its current approach, we will need to examine how this may affect competition."

Ms Guy said she found the market for leasing old trains – those that were transferred from British Rail when it was privatised a decade ago and still represent 60 per cent of the country's fleet – was not functioning properly. "The specific requirements of each franchise means that train operating companies often have few or no alternatives to leasing the incumbent rolling stock when they bid for a franchise," she said. "There is a shortage of alternative rolling stock that is both available and suitable." She said the Commission had yet to make any conclusions.
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