Bigger cost to taxpayers after rail firm sacked

Rail routes run by South Eastern Trains cost the taxpayer millions more pounds to run following the sacking of disgraced Connex.

The level of subsidy to the country's most crowded commuter network rose to £10.14 million for each of the first five months after the franchise was taken over by SET, it was revealed today.

For each of the final 10 months under control of French-owned Connex the average subsidy was £7.81 million. But today SET, installed by the Strategic Rail Authority to restore an acceptable level of service, said it would soon be able to operate on just £6.7 million a month.

Connex was sacked 18 months ago for financial incompetence running the busy routes from Kent and south east London into Charing Cross, Victoria and Cannon Street.

Now SET managing director Michael Holden says it is likely to return a portion of the £80.7 million subsidy it agreed with the SRA for financial year ending in March. Better financial performance meant this was "no longer required," he said.

The statistics will increase demands by the rail unions to keep SET under public control - citing both improved finances and an improvement in train timekeeping.