THE Wales and Borders rail franchise should be taken into public ownership, a group of Welsh MPs have said.

The report by the Welsh Affairs Committee has recommended the franchise, which runs throughout the entirety of Wales as well as parts of western England, should be handed to the Welsh Government when it comes up for renewal in 2018.

Among concerns raised around the current contract, run by Arriva Trains Wales, is that the only elements which incurs a financial penalty if it is breached is punctuality of services, which gives the company little incentive to make improvements elsewhere.

The report said: “The 2018 franchise presents the opportunity to bring about transformational change.

“From the evidence we have received this will only be possible if a number of infrastructural improvements are made, principally, the electrification of the network, but also line speed and signalling enhancements, station facilities upgrades and increased capacity at stations which currently act as bottlenecks.”

Newport West MP Paul Flynn, who joined the committee last month, said: “Rail in Wales has been a sad story of under investment and failure to grasp new opportunities.”

The Welsh government already invests around £170 million into overseeing the franchise.

The report has been welcomed by director of the Welsh branch of the Institution of Civil Engineers Keith Jones.

“It is essential to ensure the maximum value is derived for passengers on the Welsh rail network,” he said.

“The Welsh Government has a great opportunity when they take over the responsibility for these rail services to provide the level of service expected as we move into the next franchise.”