What his policy is on the privatisation of InterCity East Coast rail services; and if he will make a statement.

My right hon. Friend the Secretary of State announced the Government’s programme for rail franchising in March. This included the intention to return the InterCity East Coast franchise to the private sector by February 2015, and this remains our policy.

Why does the Minister continue to claim that the only way to get investment in the east coast main line is through privatisation, when he is well aware of the planned upgrade and the new generation of inter-city trains, both paid for by the taxpayer?

Because, as I would hope the hon. Gentleman appreciates, the purpose of Directly Operated Railways is not to run a railway ad infinitum; it is a short-term measure when a problem arises with a franchise. He is absolutely right that as part of the record-breaking investment in our rail infrastructure we are investing in the east coast main line—as we are doing in the west coast main line and other lines— because that is the way forward. With the innovation and impetus of the private sector and a private sector franchisee, the maximum benefits can be ensured from state and Government investment.

Why have the Government reordered the franchising timetable, and what is the justification? The east coast main line timetable has been accelerated way out of order. What is the cost to the taxpayer?

The reason for the change in the timetable is the unfortunate episode with the west coast main line—[Interruption.] I said “unfortunate”. Following the Brown inquiry, we redrew the franchising programmes and took his advice that the west coast main line and east coast main line franchises should not be done at the same time. That is why we are pressing ahead with putting the east coast main line franchise back into the private sector in February 2015.

The Minister knows that his decision to reorder the franchising timetable just to enable him dogmatically to flog off a service that is working well has required him to renegotiate extensions to other inter-city contracts. Can he confirm, therefore, as a result of his negotiating skills, how much money he is requiring Virgin Trains to pay to the Government next year?

I do not think the hon. Lady fully appreciates the role of DOR, which is not to run a franchise ad infinitum but to do so as an emergency measure. We have made it plain, following the Brown inquiry and recommendations, that it is best for the private sector to run the railways, as was always intended under the legislation, and that is why we are pressing ahead.

I am disappointed that the Minister does not know what he has negotiated, but I can tell him that Virgin Trains is paying £94 million, which, according to the independent rail regulator, is a staggering £64 million less than it paid last year. As his own Department’s figures reveal that he could have ended above-inflation fare rises next year for a similar sum, is it not a disgrace that passengers face fare rises of up to 9%, adding to the cost of living crisis, as a direct result of his decision to pursue this costly and unnecessary privatisation?

The hon. Lady forgets to mention that to take into account the economic situation and economic mess that we inherited from her Government, we have provided help to fare payers by reducing the average formula from RPI plus 3% to RPI plus 1%. She selectively chooses the figure of a 9% increase—an extreme increase—but that will arise in a very small number of instances, because the formula calculates an average increase. She also forgets to mention those fares that have gone down rather than up.