Hello. Read the below (it won't take long and there are a few pictures) and you'll: SEE the MD of First Capital Connect LAUGHING at evening peak restrictions. READ how much the CEO of FirstGroup gets paid. LEARN exactly where all the money you pay to travel to work goes. Everything is verifiable, not least by the words of the MD and CEO themselves. All references included.

Not got time? Okay, you can download all the text below as a Word document. it prints out fine over five pages. Don't leave it on the train though will you?

Right, let's get on with it. Here are three newspaper headlines from the past three years. See if you can spot a consistent theme:

FirstGroup rail profits hit record level

First defended the soaring profits at a time of above-inflation rises in rail fares by maintaining that most of the increase in revenues came from higher traffic levels.

(See the original here)

FirstGroup profits rise with fuel prices

Chief executive Moir Lockhead said the Aberdeen-based group was witnessing a ‘modal shift’, driving millions more people on to trains and buses. 

(See the original here)

Demand for public transport drives FirstGroup

Unveiling a 56.6pc leap in first-half revenue to £2.8bn, Sir Moir Lockhead, chief executive, said he was confident that passengers would remain reliant on public transport.

Today (Nov 2008) Sir Moir said: ‘We are making small acquisitions in the North US all the time – bolt on acquisitions. That will continue. With our free cash we will [also] reduce debt.’

(See the original here - I'm not making this up!)

And finally, TO CAP IT ALL, from Reuters news agency:

Cazenove analysts said FirstGroup has delivered ‘a solid set of first-half results in line with our expectations and demonstrating strong growth. ’FirstGroup remains our favoured pick in the sector given its low exposure to rail activities, which we view as the most economically sensitive aspect of public transport activities.’

Did you get that? FirstGroup has a: low exposure to rail activities

This really isn't a blog, honest. Trust me on that.

Having just had to get my own money out and pay a 7.5% increase (note to FirstGroup: Inflation is currently circa 3%) from £238 to £257 for one month of the 25 minute journey to work, I thought I'd investigate First Capital Connect/FirstGroup a bit.

Thanks to the magic of the Webternet you don't have to try too hard to get an awful lot of background on First Capital Connect, so here it is.

First Capital Connect – The facts

(This won’t be too long, boring and nerdy and as mentioned above, I’ll throw in a few pictures.)

First Capital Connect won ‘the franchise’ in April 2006. Did it win it because it was providing much-needed improvements, such as more trains and improved punctuality? Did it buggery.

First Capital Connect is still using the same crap old trains that Thameslink was, with the exception of 12 that were leased to Southern Railways. Awesome. It promised that it would get these trains back before 2009. It hasn’t. That’s why you can still find 4 carriage trains pulling into St Pancras at around 5 o’clock.

First Capital Connect blames the Department for Transport for most things, claiming – for instance – that the franchise forbids it from buying rolling stock.

The DfT confirms it gave the franchise to FCC because it offered good value to taxpayers, not necessarily the best service for customers.

The DfT does not know why First Capital Connect now runs shorter trains in the rush hours. Nor does the DfT know why First Capital Connect does not offer more peak-hour service

The DfT points any enquiries re: both the above points to The Office of the Rail Regulator

The Office of the Rail Regulator refers any questions to Porterbrook Leasing, which owns the FCC rolling stock.

First Capital Connect is investing money of course, in CCTV cameras and revenue protection at stations.

FirstGroup is a massive company that owns bus companies all over the world. It turned over £4.7 Billion last year. It is now the only provider of national bus services in the USA. Hoorah.

That made me feel a lot better when I squeezed on to the 20 year old 4 car train at 7:45 on the Tuesday morning this week, only to have to get off it again 5 minutes later before it started moving because it had broken down.

Here's a picture of the MD of First Capital Connect Elaine Holt, belying her 41 years on the cover of Rail Professional magazine (go on, Google it, it’s really a magazine!):

Okay, I don’t blame FCC for everything. There’s clearly something horribly wrong with the whole rail franchise model and how the DfT has it set up.

Any franchise holder is tasked to perform for the Treasury and investors, not the poor bloody traveller, who foots the bills and suffers accordingly on a daily basis.

About an hour of research on the interweb has indicated quite clearly to me that FirstGroup is big enough not to be that bothered if I get to work on Monday on time or not.

FirstGroup – regardless of what your Passenger Satisfaction Score says, your service on the Bedford – London line is crap. You should be ashamed of yourselves.

At least get rid of the rubbish 'Your Journey, Your Choice, Your Railway' stupid slogans on badly designed posters. It IS our journey, but most of us certainly don't have a choice. It's YOUR bloody railway, and it's crap.

Once more, this is NOT a blog! However, First Capital Connect’s exploitation of a Retail Price Index/Inflation Rate 'loophole' to enable it to increase fares by between 6% and 9% warrants an update. Here’s why:

In November last year (2008), I had several rather bizarre Thameslink Programme-branded bottles of water thrust toward me at Farringdon station, apparently to help ensure I was aware that various bits of track and station were being worked on, that it will take forever and a day and to be careful not to fall in any holes.

I felt guilty.

At last I understood what First Capital Connect has been up to for the past few years. It has been planning furiously, while saving up the cash like a bilby for a big railway-fixing push, starting in Q3 of 2008 of course.

The Bilby

Everything was going to be alright, I was certain. I ran home and investigated the leaflets and logged on to the Thameslink Programme website. Moments later I'd become distracted and found myself looking at the most expensive thing I could find on eBay.com (a Boeing 727 circa $3 million).

Around about that time I recalled one of the few paragraphs of the Thameslink Programme website I had managed to read before the 'colouring book' design made me too nauseous to go on. I'll cheekily show you the paragraph I found on www.thameslinkprogramme.co.uk below:

Well fan my brow. What IS FCC doing with all the money then?

Some of it goes to Moir Lockhead (below, right), the Chief Executive of First Group, quite a lot of it. His pay is up a quarter of a million quid this year, to just over £1 million. I'm sure he needs it though, as he lives in Aberdeen on his 350 acre farm and has lots of flying up and down the country to do to get to important meetings. I note he was knighted last year, so that's Sir Moir to you and me.

A lot of bull. The above is an Aberdeen Angus and is indeed one of Sir Moir's. That's Sir Moir himself on the right of course.

Admittedly it's more likely that his pledge to grow shareholder payouts by 10% 'for the foreseeable future' - at least until 2010 is really where the money you and I hand over every day, week, month or year goes.

Last year the Evening Standard pointed out which rail firm had the biggest profit, but worst service. Yes, it was First Capital Connect.

Let's see if FCC can crack on and win this prestigious award again this year. I know I'm doing everything I can to help keep that profit up, my girlfriend too. Just going to work every day involves us paying over £500 per month between us for the 20 minute journey. That's over £6000 per year and that is why I am cross.

Maybe if it does manage the most massive profits and worst service again this year I'll get a trophy made and send it to Sir Moir - he can put it on the shelf with the awards for his bull’s semen he's won.

News Update:
January 15th 2009

FirstGroup's shares slid nearly 11% to 375.75p, making them the biggest faller on the FTSE 100.

Why?

Because of problems with its North American Greyhound Bus division. Well, I mean! DUH!

There are dozens of customer reviews for Greyhound Bus Lines on Yelp.com, a US review site. Here are the New York Greyhound Bus reviews a few central themes there - one thing the Greyhound Bus business that FirstGroup owns has in common with First Capital Connect is: the service stinks.

However, as it's relatively cheap, the resemblance ends there. I see why it was an attractive buy for FirstGroup though, as - like First Capital Connect - the bulk of its passengers have no choice.

What can we do about FirstGroup and First Capital Connect?

Blimey, I don't know. The objective of this site (okay, page) is to point out that the franchise model is flawed and that the flaws are being thoroughly exploited by - in this instance - FirstGroup for the benefit of the company and its shareholders.

It's clear to me that the cost per mile of a journey by train needs to be BELOW the equivalent car journey cost. I would NOT have thought this needs to be pointed out in 2009.

Boring personal detail to follow...

For instance, tomorrow, even though my girlfriend and I have spent £257 on monthly tickets (yes, that IS each) the total cost of getting to work for us will be £25.70 (£257*2/20).

Should I have chosen to drive (50 miles return that's 2ish gallons of petrol - call it £10, plus £8 'congestion charge' - free parking where I work) I would be £7.70 up on the deal. Every day.

...boring personal detail over.

This is so wrong. First Capital Connect expects me to pay over £3000 for the privilege of going to work every day.

This is not good enough. Pay about €3000 in Germany and you get:

To use every single bloody train in the country going wherever you want to throughout the German rail network, which is A LOT BIGGER than the one in England, and whenever you want to as well (no Elaine Holt-style peak restrictions there), even including the 300km/h Inter City Express trains, which come complete with restaurants, free WiFi Internet access, VIP lounges, free travel for your children (four of them) and you even get your baggage collected from home for free. Details aside, the difference overall is frankly embarrassing.

Conclusion

The UK's shabby franchise model mockery prioritises providing income for the Treasury and the likes of FirstGroup (and its shareholders of course). It is not good enough and needs to change. Now.

Any ideas? Email me. Please.

April 11 2009 News! Elaine Holt leaves First Capital Connect

Oh dear, Elaine Holt has left FCC, quickly, 'to pursue other interests'. Call me cynical, but I don't expect it means good news for the hapless customers of FCC. While I am still cross about her vivid delight at being the mouthpiece for whoever came up with the evening peak restrictions, apparently she was reasonably personable and approachable.

God knows what's come from Aberdeen that she did NOT want to cascade down the line this time. Speculation of course, for which I apologise. I get cross about this time every month though, as it's time for me and my girlfriend to shell out another £514 for both of us to get to work for another 4 weeks.

DEFINITELY don't print these out (above) and leave them on the train will you?