Ninenty Million Pound State Benefits Payment For Train Operator

RAIL UNION RMT today slammed news that private train operator Stagecoach is to receive £90 million a year in state aid to prop up its East Midlands franchise.

The news of the corporate welfare comes as Stagecoach have declared six month profits of £88 million to the 31st October.

The taxpayer-funded benefits on the East Midlands route will be added to £55 million in state revenue support in the past six months for Stagecoach on South West Trains and their joint venture with Virgin.

RMT General Secretary Bob Crow said:

“The McNulty Rail Review wants to axe a billion from the railways in staffing cuts and service closures while companies like Stagecoach are bleeding hundreds of millions out of the taxpayer in corporate welfare to protect their profits. It’s an absolute scandal.

“RMT will be using this battery of information about the state-funded, rip-off culture of the train operators in our fight against McNulty and in the campaign for the cheaper and efficient option of public ownership of our railways.”

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