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Welsh Government has announced it will bring the Wales and Borders rail franchise under public control.
The decision has been made at a time when passenger numbers have dropped sharply due to the coronavirus pandemic.
Transport minister Ken Skates said the decision will help secure the future of the rail service, protect jobs and maintain Welsh Government’s metro plans.
Currently, the rail franchise is run by Keolis and Amey, which took over from Arriva in 2018.
Under the new plans, a new publicly-owned subsidary of Transport for Wales (TfW) will run day-to-day rail services from February 2021.
South Wales valley lines have already been adopted by Welsh Government.
Mr Skates said: “The last few months have been extremely challenging for public transport in Wales and across the UK.
“Covid has significantly impacted passenger revenues and the Welsh Government has had to step in with significant support to stabilise the network and keep it running.”
He added: “In Wales, we continue a partnership approach between TfW and Keolis and Amey as we work together to protect services for the Welsh public, safeguard jobs and secure the important Metro projects we have been working so hard on over the last few years.”
Deputy transport minister Lee Waters said: “We are bringing the Wales and Borders service into public hands because it is a vital asset, critical to the future of our economy and our communities.”
TfW chief executive James Price said: “There is no doubt that there will be difficult decisions in the future as we adapt to the realities of a post-covid era, but this agreement will give us a stable base from which to build back better.”
Islwyn’s Labour Senedd Member, Rhianon Passmore, welcome the news and said: “The Tory privatisation of our railways in the 1990s has been a disaster for commuters and I have long supported bringing our railways back into public ownership.
“Along with the Welsh Government’s re-regulation of bus services, I believe this step will help us achieve high quality integrated public transport in Wales.
“Commuters in Islwyn have already seen improvements under TfW, such as new rolling stock on the Ebbw Vale line.”
Caerphilly MS Hefin David said: “In the circumstances it is entirely appropriate that rail services are nationalised, as to do anything else would risk the collapse of the service. I will continue to meet with TfW to discuss ramping services back up after November 9.”
Plaid Cymru’s shadow transport minister, Helen Mary Jones, said nationalising the railways “could well be the right decision”, but called for the Senedd to be recalled so it can be debated.
Meanwhile, Welsh Conservative shadow economy minister, Russell George, said it had “not filled me with hope” and added: “Given how reliant the people of Wales are on using trains, we cannot allow the Welsh Labour-led Government to run it into the ground, like it has with Cardiff Airport.”
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