Brian Meechan The Politics Show Wales

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Arriva: Departure of CEO shocked observers

The Assembly Government is warning the train operator, Arriva, that its franchise may be at risk unless it continues to improve its services.

The company's Managing Director in Wales, Graeme Bunker, recently left his job in a move that shocked many observers.

Now the Enterprise Minister, Andrew Davies, who's responsible for the railways, says he will not let the changes at Arriva damage services to passengers.

Arriva has been providing trains across the whole of Wales for more than two years. In that time its not been short of critics.

Politicians and passengers have complained about punctuality, reliability and the standards of the trains and stations.

The operating of the Valleys lines has been particularly criticised.

But Arriva says there has been improvements in recent months and the Assembly Government, which has been responsible for rail since it was devolved in April 2006, agrees.

Assembly control?

Ministers in Cardiff Bay now control the money paid to Arriva, which this year alone amounts to more than �140m.

Passenger Focus, which represents travellers interests, says there has been improvements, but there's more to be done.

Simon Pickering says "The Assembly Government has a big role to play in this.

"Essentially two-thirds of Arriva's operating revenue come from the public purse.

"So in large respects it's a government contract that they're operating and it's the assembly government that's responsible for that so they need to make sure that they're getting value for money"

More investment

According to Passenger Focus, the increasing demand for rail services in Wales and the contract that Arriva signed for the franchise means that more investment will be needed from the Assembly Government in future to improve the service.

The Enterprise Minister, Andrew Davies, who's now responsible for the railways, says he's focused on the pledges the company made when it was awarded its 15-year franchise.

"They have very clear targets to reach in terms of performance and they know as well that there are five year breaks in which the franchise will be reviewed.

"And they know that if they are not up to scratch, if they don't reach their targets, then the franchise can not only be re-opened to review but can be re-tendered"

While maintaining that the service has improved, Arriva's Managing Director Graeme Bunker, last week shocked observers by leaving the company.

He has been replaced by Bob Holland.

There are suggestions that the change came about because the improvements had come at a cost to the company's profits.

AM's concern

Plaid Cymru AM, Helen Mary Jones, says that would be a real concern.

"The last thing we want is to be dealing with a rudderless, leaderless organisation about something as important as the public transport infrastructure for Wales.

"It may be to do with profits, it may be, of course, to do with the fact that they've lost some major contracts.

"It is very important that the Assembly Government keeps a grip on the situation and makes sure that work for Wales is prioritised."

But the Enterprise Minister says he plans to make sure taxpayers will get value for the huge amount of public money being invested.

Andrew Davies told the Politics Show, "I sought an assurance from Bob Holland at my very first meeting with him that they shared my commitment to improving rail services and that the changes within the company didn't signal a reduction of their commitment.

"He assured me categorically that they shared that commitment and obviously as a government, and as a minister, I will be holding them to that."

We ask what this means for passengers in Wales.

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