Fishplate84
Member
- Joined
- 15 Dec 2014
- Messages
- 88
That's a strange argument to make. The problem is that nobody, including the Government, wants the operator to make much profit so the industry bids lean and optimistic and they are in trouble if it doesn't go exactly to plan. The operators should be bidding at and allowed to make much fatter margins to have the capacity to take a few big hits like this. If there's more margin in it for them, there's more ability and willingness to invest in the services and improve them.
Scottish Government tendered this to be delivered as a much-improved quality service and committed a vast sum to ensure it got the improvements it wanted. All credit to them for having the vision and choosing a solution to deliver it. Serco have been doing a good job of turning the sleeper around. Everything about it is so much better than it was even if the pricing has increased to reflect a much better product. With the new stock very soon arriving it's so close to finally having the tools to do the job properly and to set it up for a long-term future.
You only need to look at Carillion, Capita and Interserve to see how foolhardy it would be for Serco to keep taking heavy losses on it and if the alternative is going to cost Scottish Government just as much money, sending Serco to the wall just so they can keep getting the sleeper artificially cheaply for a bit longer is exactly the sort of irresponsible government procurement and short-sighted decision making in Westminster that has been questioned in the headlines recently. You'd hope Scottish Government is more mature and pragmatic.
Difficult for Scottish Government. They carved out the sleeper from ScotRail and presumably were equally as naive as Serco about the real cost of creating and operating a small, niche franchise. If they accepted the Serco bid in the full knowledge it would be in trouble so soon and rejected other more realistic and expensive bids, that's surely an embarrassing procurement failure?
Scottish Government have few choices. It's not a position that can be traded out of with few services, finite customer capacity and a fairly inflexible product mix. So,
1, Transport Scotland accept the sleeper costs far more to run as a separate franchise than they thought and pay up to maintain their vision of having the sleeper as the iconic world-class service it's starting to become and they want it to be, or
2, U-turn on their aspiration and slash it back to the bone to contain costs in an attempt to make it affordable (whoever runs it, in-house, re-franchised or folded back into ScotRail) destroying any hope of the sleeper ever being anything more than a lame duck oddball service to be delivered at lowest possible cost, or
3, Throw in the towel and close it down as an unaffordable folly and hope to recover some of the new rolling stock costs by offloading them to the Night Riviera.
Only one of those looks remotely politically attractive.
Scottish Government tendered this to be delivered as a much-improved quality service and committed a vast sum to ensure it got the improvements it wanted. All credit to them for having the vision and choosing a solution to deliver it. Serco have been doing a good job of turning the sleeper around. Everything about it is so much better than it was even if the pricing has increased to reflect a much better product. With the new stock very soon arriving it's so close to finally having the tools to do the job properly and to set it up for a long-term future.
You only need to look at Carillion, Capita and Interserve to see how foolhardy it would be for Serco to keep taking heavy losses on it and if the alternative is going to cost Scottish Government just as much money, sending Serco to the wall just so they can keep getting the sleeper artificially cheaply for a bit longer is exactly the sort of irresponsible government procurement and short-sighted decision making in Westminster that has been questioned in the headlines recently. You'd hope Scottish Government is more mature and pragmatic.
Difficult for Scottish Government. They carved out the sleeper from ScotRail and presumably were equally as naive as Serco about the real cost of creating and operating a small, niche franchise. If they accepted the Serco bid in the full knowledge it would be in trouble so soon and rejected other more realistic and expensive bids, that's surely an embarrassing procurement failure?
Scottish Government have few choices. It's not a position that can be traded out of with few services, finite customer capacity and a fairly inflexible product mix. So,
1, Transport Scotland accept the sleeper costs far more to run as a separate franchise than they thought and pay up to maintain their vision of having the sleeper as the iconic world-class service it's starting to become and they want it to be, or
2, U-turn on their aspiration and slash it back to the bone to contain costs in an attempt to make it affordable (whoever runs it, in-house, re-franchised or folded back into ScotRail) destroying any hope of the sleeper ever being anything more than a lame duck oddball service to be delivered at lowest possible cost, or
3, Throw in the towel and close it down as an unaffordable folly and hope to recover some of the new rolling stock costs by offloading them to the Night Riviera.
Only one of those looks remotely politically attractive.