Great Western Coffee Shop

The present Great Western franchise is to be extended because the DfT's franchise renewal programme is running behind schedule.

The contract, which is held by FirstGroup, was due to end in April next year after First declined to take up an option to keep it until 2016, so saving the payment of an estimated ^800 million in premiums.

But the Invitation to Tender has yet to be issued to the shortlisted bidders. A DfT spokesman conceded that a new franchise cannot now start on on 1 April 2013, and said an announcement would be made shortly about an extension. He declined to give a precise date, but said the extension would probably take the present contract to July.

He also said the ITT would be published soon.

There had been fears in Cornwall that the minimum service specification in the ITT is set to cut the number of daily through trains between Cornwall and London from nine to six.

Concerns have been expressed by councillors and business leaders, and MPs in the Duchy have also joined the protests. West Cornwall Liberal Democrat Andrew George said: "As we understand it, it does mean the companies bidding for the franchise might be able to include proposals that would reduce the service. This is something we're not prepared to put up with.

"At a time when other parts of the country are seeing ^9.4bn of improvements to their rail services, we would actually see a cut."

But although the DfT would not give any details ahead of the ITT, a spokesman said: "We are committed to ensuring that all passengers on the Great Western network continue to enjoy access to regular train services."

'Delay' on new rail franchise decision

The Government could be about to beg train firm First Great Western to continue running rail services in the region ^ despite the firm ditching the deal last year.

First was due to surrender its control of the Great Western franchise in April after the firm exercised a break clause that meant it did not have to run the service to 2016 as originally intended. The move saved the company an estimated ^800 million.

But the Department for Transport (DfT) has been hit by delays in its quest to find a successor, and may ask First to carry on after April. First confirmed the department has the option to extend the existing franchise "by a short amount of time".

Labour claimed the Government's rail strategy is "descending into chaos and confusion" and risks leaving taxpayers with a hefty bill.

When the Government had to extend Virgin's rail franchise on the West Coast line last year it cost ^263,000 in legal and consultants' fees.

The delay comes amid fears Cornwall will lose one-third of its daily through services from London under the new contract, causing outrage among MPs and business leaders. Maria Eagle, Labour's Shadow Transport Secretary, said: "The Government's rail strategy is descending into chaos with Great Western the latest franchise apparently off track.

"The Transport Secretary must admit if these reports are true and come clean on how much this has cost the taxpayer, when last year's negotiations for a similar extension to the West Coast franchise cost more than a quarter of a million pounds in payments to consultants and lawyers.

"With First reportedly avoiding ^800 million in payments back to taxpayers by initially refusing to extend this franchise, ministers must also explain whether any of this money will now be paid or if taxpayers will yet again be left out of pocket."

The DfT will "soon" issue a so-called Invitation to Tender (ITT), which sets out what the Government expects from shortlisted bidders.

Last night it refused to say whether or not it would meet the April takeover deadline, with a DfT spokesman saying in a statement: "We are going to publish the ITT shortly. Anything else is speculation at the moment."

Parent company First Group is one of four on the shortlist alongside GW Trains Limited (part of Arriva UK Trains ^ DB), NXGW Trains Limited (part of the National Express Group) and Stagecoach Great Western Trains Limited.

The new operator ^ which pays the Government to run the service and pockets fares in return ^ will take charge for 15 years.

A First Group spokesman said: "As with other rail franchises, the Department for Transport has the option to extend this by a short amount of time, but we have not yet been informed of their position."

Is this not old news?  I thought July was mentioned a while back?  Although the media seemed to have missed the news that it was already being extended to end of April due to the Reading blockade at Easter.