MISTAKES over the west-coast rail franchise should not have been made and are very regrettable, Transport Secretary Patrick McLoughlin told MPs yesterday.
He apologised to taxpayers who are now facing a £40 million bill following Mr McLoughlin’s decision to scrap the west-coast franchise process following the finding of serious errors by the Department for Transport.
The DfT, under the leadership of the then transport secretary Justine Greening, had decided in August to award a new 13-year west-coast franchise not to Sir Richard Branson’s rail company Virgin Trains but to rival transport company FirstGroup.
Sir Richard launched a legal challenge and the DfT discovered flaws with the bidding process.
Mr McLoughlin then cancelled the bidding, laying the blame on DfT officials. Three DfT civil servants have been suspended.