THE rail minister admitted today (June 5) that the East Coast line had been “successful” in public ownership – even as he vowed to re-privatise it.

Under pressure in a Commons debate, Simon Burns dropped an earlier claim that the key route was the “worst” in the country, for reliability and punctuality.

However, Mr Burns insisted the department for transport (Dft) would stick to its controversial plan for a private company to take over the East Coast, in February 2015.

The move is fiercely opposed by Labour, which argues it makes no sense to risk a third franchise fiasco on a line that has prospered in public hands.

In today’s debate – led by Middlesbrough MP Andy McDonald – angry North-East MPs lined up to brand the plan “absurd” and “beyond belief”.

Mr Burns was told the East Coast - run by state-owned Directly Operated Railways (DOR) - had outperformed the Virgin-controlled West Coast line, over the last year.

In April, the minister provoked a storm when, referring to the East Coast’s figures, he told MPs: “They are the worst of the 19 rail franchises.”

Today, he switched tack, admitting: “It has been extremely successful in a period of public ownership through necessity.”

However, he added: “We believe it is better for the East Coast to be back in the private sector, to deliver the best possible long-term outcome for passengers and taxpayers.

Only a private company could provide the “certainty of ownership” and the innovative and entrepreneurial approach” required, he said.

But that view as ridiculed by Mr McDonald, who argued the East Coast: * Was the only line that “comes close to paying for itself” – with a Government subsidy of just one per cent.

  •  Had seen financial stability “restored” since it was taken over by DOR, in 2009.
  •  Enjoyed a profit of £647.6m in the last four years – more than that delivered by any other previous operator – which was reinvested in the line.
  • Had seen journey numbers grow from 18.1m in 2009-10 – when DOR took over - to 19.1m in 2012-13, resulting in a £40m surplus.

Mr McDonald said: “It is this money that would otherwise be providing the profit to shareholders if the line were privatised.

“Why does this Government believe that other countries can run our rail services, but that Britain itself cannot?

“Should a public asset be managed by the British Government, a foreign government, or one of just a handful of private companies large enough to be capable of meeting the bidding criteria?”

DOR took over the East Coast line after the fiasco that saw National Express pull out of its contract, in 2009. Three years earlier, GNER also handed back the keys.

Virgin, FirstGroup and a consortia led by SNCF, France’s state-owned rail company, are expected to compete for the new franchise.