THE TORIES returned a 15-year rail franchise to National Express owner c2c yesterday, despite the company costing the taxpayer millions when it dumped the East Coast franchise in 2009.

Union leaders stood incredulous after the announcement that c2c would be keep the Essex Thameside network.

Acting RMT general secretary Mick Cash said: “This is a gold plated franchise awarded to a company that only a few years ago was throwing the keys back at the government on the East Coast Main Line. 

“National Express shouldn’t even be on the shortlist for these contracts, but in the crazy world of rail franchising reward for total and abject failure is the order of the day.”

Passengers have been promised improved services with the awarding of the franchise, including an additional fleet of 17 new trains.

Rail Minister Stephen Hammond said: “Brand new trains, thousands more seats and millions of pounds invested in stations will mean significantly improved journeys for passengers.”

But drivers’ union Aslef general secretary Mick Whelan was not impressed.

He said: “The announcement from National Express is full of half-truths and misleading statements. For example, it talks of a fleet of new trains, but no train operating company in this country invests in new trains. They are funded by the taxpayer.”

TSSA rail union leader Manuel Cortes slammed the award and the system which allowed it to take place.

He said: “This is the latest example of cosy cartel capitalism that Transport Secretary Patrick McLoughlin has transformed the supposedly-open competitive franchise system into.

“More than a dozen franchises have now been simply extended or handed to existing operators like any other old boys’ network operating behind closed doors.”

Yesterday Aslef also submitted its views to the Department for Transport’s consultation on the Great Western franchise.

The union said the franchise should not be awarded to First Group after the company decided not to pay £800m which was due to the government in 2011. 

Aslef said that continuing the franchise with First Group would give it “a guaranteed income with virtually no risk and no incentive to actually improve performance.”