John Lewis boss ‘to lead review’ into rail industry amid calls for nationalisation
John Lewis boss Keith Williams is to lead the government's review into the rail industry next week as it battles criticism over its franchise system.
The Sun reported that deputy chairman Williams will lead review – to be announced on Thursday – to focus on a balance between the public and private sector at a time when the industry is facing growing calls to be renationalised.
The transport secretary, Chris Grayling, is known to want to stick with the current franchise model, which is a partnership between state-run railway owner Network Rail and private train companies, which operate the services.
John Lewis runs an employee-owned partnership which awards profits to its staff in the form of an annual bonus rather than to shareholders.
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The review comes as MPs published a report earlier this week into the East Coast franchise, operated by Virgin and Stagecoach, in which it said the Department for Transport (DfT) encouraged overbidding in its invitation to tender and so should accept some responsibility for the franchise's failure.
The rail industry has suffered blows to its credibility over the collapse of the East Coast franchise and a botched timetable in May that has led to severe delays, cancellations and overcrowding.
The East Coast franchise was brought into government control earlier this year after it collapsed as a project increase in passenger numbers failed to materialise.
Next week the rail regulator, the Office for Road and Rail, will publish its report into the timetable fiasco in May which disrupted the railways over the summer and is continuing to do so in some areas.
The Labour party has pledged to nationalise the railways, saying the franchise model was "broken".
A DfT spokesperson said: “Privatisation has helped transform our railway – doubling passenger numbers and delivering more services, extra investment and new trains.
“We are absolutely committed to improving journeys and are always examining ways to improve how the railway serves passengers.”
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