Virgin Trains have now lost the contract as FirstGroup came in with a better offer. I can imagine pound signs kerching in Osborne’s eyes as this will balance the books in the short term. Anyone who has been on ebay knows it’s easy to win bids, put down a ridiculous high figure and you can guarantee to win, but you need to have the money to pay for it.
If FirstGroup are being unrealistic the first people to be hit will be the passengers, fares will gradually increase, less trains will run, next working conditions worsened in order to come in on budget, finally, once they have tried to get blood out of the stone they will declare themselves bankrupt and leave the market.
Give the railways to a non profit making organisation so fair prices can be installed and people enrouged to use the rail network once again. To coin a phrase that we all love and know – give the workers the means of production.
Until greedy shareholders are expelled from any industry, prices will always be driven up as their desire to have a bigger bank balance overrides any sensibility.