Leaders from across the North West have reacted to the news that TransPennine Express (TPE) has lost its contract due to "continuous cancellations".
Transport Secretary Mark Harper has decided not to extend or renew TPE’s contract after passengers suffered from widespread delays and cancellations over the past year.
TPE's services will be borught in to the Department for Transport’s Operator of Last Resort from May 28.
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The FirstGroup-owned operator, which covers an area across northern England and into Scotland, has been badly affected by drivers who are members of the Aslef union no longer volunteering to work paid overtime shifts.
Latest figures show TPE cancelled the equivalent of one in six services across most of March.
Transpennine Express operates services to the likes of Liverpool, Manchester, Leeds, York, Newcastle, Sheffield, Hull, Middlesbrough, Scarborough, Cleethorpes, Preston, Carlisle, Glasgow and Edinburgh.
Mr Harper said: "In my time as transport secretary, I have been clear that passenger experience must always come first.
"After months of commuters and Northern businesses bearing the brunt of continuous cancellations, I’ve made the decision to bring Transpennine Express into operator of last resort.
"This is not a silver bullet and will not instantaneously fix a number of challenges being faced, including ASLEF’s actions which are preventing Transpennine Express from being able to run a full service – once again highlighting why it’s so important that the railways move to a 7-day working week.
"We have played our part, but ASLEF now need to play theirs by calling off strikes and the rest day working ban, putting the very fair and reasonable pay offer to a democratic vote of their members."
The government said the decision to bring Transpennine Express into the control of the operator of last resort is "temporary and it is the government’s full intention that it will return to the private sector".
It added: "In light of this, today’s decision will not instantaneously resolve the challenges being faced on the lines, but will provide an opportunity to reset relationships between the operator, staff, trade unions and passengers."
In January, BusinessLive reported that profits were slashed at Transpennine Express during its latest financial year despite the train operator receiving almost £260m from the government.
Accounts with Companies House have revealed the firm's pre-tax profits slumped from £72.1m to £8m in the 12 months to March 31, 2022.
Transpennine Express received a revenue subsidy from the Department for Transport of £259.3m, down from £325m.
The operator said the decrease in its overall turnover from £437.7m to £420.9m due to the prior year's total including exceptional income of £59.9m.
In response to the news, Lord McLoughlin, chair of Transport for the North, said: "We welcome the decision announced today by the Secretary of State to bring the contract under Operator of Last Resort (OLR) for TransPennine Express.
"The TfN Board’s position on this issue has been clear for some considerable time, that services need to significantly improve. While we have seen some improvements over recent months, to achieve the performance levels passengers expect and deserve, and that the northern economy needs, there is a need for a resetting of the operation.
"We will now look forward positively to discussing with our members and working with the government to ensure the best way to achieve a service that meets the expectations of those living and working in the north."
Henri Murison, chief executive of the Northern Powerhouse Partnership, added: "Having worked with the management team at TransPennine Express on their recovery plan, I know many of the individuals involved have worked hard to improve the services and, despite their efforts, they have still found it challenging to give passengers what we would all expect and hope for.
"In making this decision, the transport secretary will be aware that the underlying performance of the services will not be improved by simply nationalising the remaining nothern operator.
"There is action short of strike action on TransPennine Express preventing the use of the newly-agreed Rest Day Working agreement, and I will be seeking an urgent meeting with the operator of last resort to urge them to agree to the union requests on working conditions agreements in full.
"I am hopeful that Aslef would then allow drivers to come in and help train colleagues waiting to be able to go out on the network so we can stop the short notice cancellations much more rapidly.
"In the end, whether a franchise overseen is run by the operator of last resort or a private company, the secretary of state is the ultimate decision maker on every major issue. It is in his gift to resolve the drivers' wider pay dispute.
"It is the case that picking a fight with the rail unions has caused misery across the country and made the problems here in the North even worse.
"If this sorry episode is to end, I won't be celebrating anything until the Government gets all the remaining issues resolved with Aslef, something which if I was in their shoes, I would have done two secretaries of states ago, when the original crisis in the North - which is costing us millions a week- began."
Andy Burnham also vowed to "restore trust" in train services for "long-suffering passengers".
The Greater Manchester Mayor, who previously called for a "fresh start" for the operator alongside other northern mayors, said he was "glad the Government had listened".
In a tweet posted this morning, Mr Burnham said: "As mayors, we have spoken up consistently for long-suffering rail passengers in the North. I am glad the Government has listened."
Liverpool City Region Mayor Steve Rotheram added: "For far too long, towns and cities across the North have been held back by a fragmented mismanaged and broken transport system that simply does not work in their interests.
"While some may see today's decision to strip TPE of its franchise as a victory for the North, it will only been deemed so if the government now acts in good faith and delivers on its promise to work with Northern mayors to ensure the next operator is chosen in the best interests of those who we will always put first - passengers.
"Poor rail performance has cost economies across the North billions of pounds through loss of productivity - and inflicted months of sustained misery for ordinary, hardworking Northerners and businesses.
"We, in the North, are not second-class citizens and we refuse to accept a second-class service.
"Today we have sent a clear message to other operators: there will be no reward for manifest failure."
Lou Cordwell, chair of the Greater Manchester Business Board (LEP), said: "We welcome today’s decision by the Department for Transport to not renew its contract with TransPennine Express.
"It is an important step towards providing the reliable train services that people, businesses and investors in Greater Manchester and the wider North so desperately need.
"The consistently poor performance of TransPennine Express has caused significant damage to the economy of our city-region. The result of thousands of cancelled services – as many as one in six, often with just a few hours’ notice – is cancelled events, lost sales, and a decline footfall in our towns and city centres. The estimated cost to the North is almost £4m a week in lost productivity.
"This has come at a time of unprecedented difficulty for businesses, who can ill afford to deal with the additional challenge brought on by an inadequate rail service.
"The Government brought Northern under the control of the Operator of Last Resort in 2018 and, while challenges remain, the change in management has led to significant improvements. A similar outcome in this situation can deliver stability and long-term change, helping to restore confidence in our rail system.
"By working with the Department for Transport, northern Mayors, Transport for the North and other business groups, we will ensure our towns and cities are connected by a rail service that is fit for purpose. In doing so we can help the Government deliver on its promise to level up the North."
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