Could Labour make a rail announcement this week? And where does that leave the NPF?

The Guardian reports this morning that the Labour Party will this week announce plans to allow state owned rail companies to compete with private sector companies for rail franchises, stating:

“Ed Miliband will anger rail unions and some Labour MPs in the announcement next week by ruling out proposals that all expired franchises under a Labour government be returned automatically to the public sector – which would amount to a form of staggered renationalisation.

Senior shadow cabinet figures have agreed that a pragmatic choice between the state and private sector based on price, reliability and quality of service will provide a solution that allays commuter frustration, provides a fair deal for the taxpayer and does not amount to a return to British Rail.

Labour has been briefing industry sources that the announcement will be made next week, although the party said this was “pure speculation”.”

The Guardian are right to suggest that such a plan would anger rail unions and some MPs – but if true (and the party says it’s “pure speculation” which isn’t a denial) it’ll annoy many NPF delegates and activists too.

Taking rail franchises back under control as they expire is one policy that was likely to be hotly debated at the party’s National Policy Forum, which takes place in Milton Keynes two weeks today. Amendments have been submitted to that effect, and were expected to receive broad backing from representatives of members, as well as many unions too. This is also a policy pushed by many Labour PPCs in a letter earlier this year, and which LabourList readers backed strongly in a survey soon afterwards.

Having a “public sector comparator” in rail franchise bids is a better system than the one currently in place – and may even have been the policy agreed upon by the NPF in Milton Keynes. However, if a policy is announced on a big issue within the party just days before what is supposed to be the major policy meeting of this Parliament, it’ll not only leave a bad taste in many mouths, it may make the whole NPF debate (not just on transport) a fractious one…