THE COMMONS Transport Committee is to take the first evidence about the disputed award of the West Coast franchise today. Richard Branson is expected to tell the MPs on the committee that the DfT's franchising process is flawed, ahead of a preliminary hearing of his grievances by the High Court.
Sir Richard and Virgin Trains CEO Tony Collins are set to tell MPs that the FirstGroup bid, worth £5.5 billion, is too optimistic, and that its acceptance demonstrates serious flaws in the Department for Transport's franchising process.
FirstGroup CEO Tim O'Toole and the head of FirstGroup's rail division Vernon Barker are due to defend their bid for the 13 year and 4 month contract as deliverable.
Evidence will then be heard on Wednesday from the new transport secretary Patrick McLoughlin and the DfT's permanent secretary Philip Rutnam.
A date is still awaited for the preliminary hearing into Virgin's petition for a High Court judicial review. Virgin lodged papers on 28 August, just one day before the FirstGroup contract was due to be signed.
The DfT has admitted that the process must now stay on hold until the legal position becomes clearer, but FirstGroup has said that it is continuing to prepare for the scheduled takeover of West Coast on 9 December.