TSSA News Release

14 December 2006

Taxpayer plays Santa to Sir Richard Branson

Ministers were criticised today for playing Santa Claus to tycoon Sir Richard Branson when they announced a new subsidy of £1.6 billion for Virgin Rail.

The cash will be paid over the next six years as part of the agreement for restoring the franchise to Sir Richard for running the West Coast line, the busiest rail route in the UK.

“Father Christmas has arrived early for Sir Richard,” said Gerry Doherty, general secretary of the second largest rail union, the TSSA.

“I am baffled as to why the taxpayer is playing Santa Claus to subsidise Virgin after spending billions over the past few years in upgrading the West Coast line.

“This is Robin Hood in reverse. The poor taxpayer is subsidising one of the country’s wealthiest individuals. This farce would not be happening if we had a publicly owned railway like the rest of Europe.”

He pointed out that Virgin’s fares were due to rise by 6.6 per cent in the New Year-twice the rate of inflation.

“I would much rather any subsidy go direct to the long suffering passengers in the form of cheaper fares rather than in extra profits for Sir Richard.

“Originally, Virgin were meant to pay the Government for operating the franchise. Now the Government is paying them. The original dream has turned into a nightmare for the taxpayer.”

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