The Department for Transport has welcomed a decision by the High Court that the Government’s decision to block Stagecoach from bidding for three separate rail franchises was lawful.
The company was barred from bidding to run the three franchises in a row over pension liabilities.
A Department for Transport spokesperson said: “We strongly welcome this decision, which finds our franchise process was fair, our conduct was transparent, and the disqualification at the heart of this case was proportionate.
“Our focus now rightly remains on tackling the Covid-19 pandemic, helping ensure the safety of passengers, and working to build a railway that works for everyone as we begin the process of recovery.”
The judge has found that the terms of the franchise competitions and how the Department conducted them were fair and transparent.
The Court decisively rejected all the challenges brought by the claimants to their disqualification and to the award of the franchises.
The judge also found that the disqualification decision was proportionate. Specifically, the judgment states that, for the Department to cancel the competitions or invite rebids (as the claimants argued it should have done) would have amounted to unfair treatment of the compliant bidders and the Department was left with no choice.
In a statement, Stagecoach said: “Stagecoach Group plc (“the Group”) notes the decision of the High Court in respect of its claims against the Secretary of State for Transport regarding decisions to disqualify the Group from three rail franchise competitions. The Court ruled against the Group’s claims.
“We believe there were important issues which needed to be determined by the court to help secure the future of the country’s rail system and our view remains that we were right not to accept the risks in these contracts.
“Nevertheless, while we are disappointed at today’s ruling, we accept the decision and move on. The country is facing a huge challenge in fighting the Covid-19 pandemic, and all of our energies are focused on ensuring our transport networks help the national effort at this critical time.”
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