Train Company Given 10 More Years

11.56.43am UTC (GMT +0000) Tue 26th Sep 2006

Passengers boarding a South West Trains carriage

The government has approved a new 10 year franchise for SW Trains, awarding the contract, again, to Stage Coach. The conditions include a bigger payment to the government; introduction of Oyster cards across the network by 2009; station improvements; and a commitment to keep fare increases within inflation plus 1%.

MP Vincent Cable said: "I have often been critical of Stage Coach's management of SW Trains but there is something to be said for the devil we know rather than a new operator starting from scratch".

"What concerns me is that Stage Coach have accepted tough conditions that will be very difficult to meet, and still hope to make money. I am left wondering what is going to give; it is unlikely to be the company's profits. There is a really urgent need to reduce over crowding and some of the proposals like double-decker trains seem exciting".

"I plan to speak urgently to the senior management of SW Trains to see what the franchise means for local services".