Keep Island Line in Franchise (KILF) Claire Perry MP Parliamentary Under Secretary of State Department for Transport Great Minster House 33 Horseferry Road London SW1P 4DR By email to Claire.Perry_MP@dft.gsi.gov.uk 13th July 2016 Dear Claire, Isle of Wight rail services I write further to our exchange last autumn (your ref: MC/145805), and I am grateful for your response dated 10th November 2015 which confirmed your recognition of the importance of Island Line for residents, businesses, and for visitors to the Isle of Wight. You also made clear your desire to secure a sustainable long term future for the line – an objective which we share. You encouraged us – the Keep Island Line in the Franchise (KILF) Campaign – to respond to the formal consultation, and I can confirm that we made a detailed submission earlier this year. We have now had the opportunity to review the Invitation To Tender (ITT) for the South Western Rail Franchise issued at the end of June, and the Stakeholder Briefing Document published last week. We note from the latter document that the majority of respondents favoured keeping Island Line as part of the wider franchise, “believing that this approach would most likely result in a secured future for the services”. In light of this, we remain disappointed at the continued franchise objective to see Island Line become a self-sustaining business during the course of the next franchise. We have seen nothing from the DfT or other interested parties to suggest that a self-sustaining business model would secure a long-term sustainable solution. To the contrary, we are concerned that this approach misses the opportunity to require the franchise bidders to develop a cost effective proposal, drawing on their expertise and economies of scale, that would deliver a long-term solution within the wider franchise model – as is being required for all other branch lines within the area. We do, however, note that paragraph 4.5 of the Stakeholder Briefing Document makes clear that stakeholders (of which we are one) are encouraged to engage directly with bidders as they develop their proposals, and we are now in initial dialogue with both of them. We welcome the fact that bidders have the flexibility to “put forward proposals that go beyond the base specification, where it can be demonstrated that such proposals would provide passenger benefits in a way that is affordable and delivers value for money”. It is our view that an integrated approach to Island Line, fully within the wider franchise model, would achieve these particular objectives – and we will be encouraging bidders to pursue this. Correspondence Address: Apartment 6, Orchardcroft House, 53 Victoria Avenue, Shanklin, IOW PO37 6LT I would. howeverr like to use this letter to seek confirmation of an earlier commitment you made regarding Island Line's infrastructure In my October 2015 letter to you, I welcomed the announcement you made in an Me of Wight County Prerr article the previous month that "Network Rail rhould take on the full curt of maintaining the line 'r infrastructure, including the track, pier and stations". This was reaffirmed in a press release on September 2015 which stated that "Nenvork Rail [would be] rerponsiblefor mainlainirtg and improving the infrastructure nf/he Ime Th' new funding model (for how Island Line's infrastructure costs are met) would be a hugely . ive step. putting Island Line on an equitable footing with the rest of the rail network. We were therefore disappointed to receive an email 2 last week from Richard Hughes (the DfT's Specification Manager for the South Western Rail Franchise). in which he sidestepped any confirmation of your earlier statement about Network Rail's future role, instead saying that would be premature to decide on a change to the funding model that currently operates Yet your article in the Courtly Prerr was a clear ministerial statement of intent as to the future role Network Rail would have in relation to Island Liner nd it was in the context of this commitment that we and many other stakeholders shaped our responses to the consultation. The current refusal of your civil servants to confirm the Dfr's commitment to your previously stated intention for Network Rall's future role in respect of Island Line gives rise to concern that consultees responded to the consultation on the ha. of a pledge which may no longer be fulfilled. I therefore hope you are able to provide some urgent clarification on this matter. particularly so that the current deliberations of the franchise bidders -- along with any discussions we may have with them -- can take place With an accurate understanding of the Dfr's intentions regarding Network Rall's future role in respect oflsland Llne Finally, I note that a ministerial reshuffle is due to get underway later today, and I therefore wi you well in whatever role you lnay be undertaking in the period ahead. If you do not continue as Rail Minister. may I take this opponunity to thank you for the interest you have shown in Island Line, and would ask that this letter is passed to your succ for a response. Yours sincerely, Chris Quirk CC: Alan Marriottr Editor, Isle of Wight County Press -- Andrew Turner MP -- ntllew uk Jonathan Baconr Leaden Isle of Wight Council -- .gm .uk John Metcalfe, Chief Executive Isle of Wight Council -- '0lln.metcalfe@itm gm uk press release. ll'h September hints time im lnunmed 1 Email exchange Richard Hughes tn appendix 1 [0 th5 letter. APPENDIX 1: EMAIL EXCHANGE BETWEEN KILF AND THE Dfl' From Richard Hughes-- Sent: 07 Juiy 201514 49 To 'David Pug Cc: Nigei Nuttaii Subiect RE: Slakeheider ting Document David>> The requirements reiating to the iuture isiand Line teasing arrangements are contained within the Franchise Agreement rather than the The current isiand Line ieasing arrangements. the spiit oi tand iunding) are in piace between the operator and Network Raii untii 2019 As set out in the the bidder be required to work Wilh stakeholders to deiiver the iuture service on the isiand Line. untii that point it wouid be premature to decide on a change to the iunding modei lnal currentiy operates, Regards. Rich Richard Hughes i Managevi South Western Franchise DepanmentiorTransport LGZ i 0207 944 3071 |077ss 701077 From David Pugh-- Sent: 04 Juiy 201512 22 To Richard Hughes -- Nigei Nunaii -- Subiect RE: Slakeheider Brieiing Document Richard Thanks tor this Very interesting Can you coniirrn that it is the on poiicy that Network Rail lakes on the foil cost or mainuining isiand Line's inlraslluclurei inciuding the (rack pier and stations. as set out in the attached anicie by Ciaire Perry in the isie oi Wight County Pvess iast September? it so, when wili this commence (such as 20t9) and are bidders being adirised oi this policy so they can iactor it into their bid proposais? I note there is no reierence to the existing iease arrangements (and their termination in 2019i in the and supporting documentation Kind regards David From nominates-- Senl: D4 Juiy 20151118 Tm David W-- Nigel Numi-- Subiecl RE: Slakeheider Blieling Document David>> The slakehoidel briefing document 70! the South Weslem llancnise has now been pubiishedi piease find the link beiew Thanks, Richard Hughes i Managevi South Western Franchise DepartmentiorTransport LGZ i 0207 944 3071 |077ss 701077