BUSINESS chiefs have spoken of the vital need for rail services from York to London to stay up to scratch after the East Coast Main Line is nationalised next week.

The Department for Transport (DfT) announced yesterday that York-based National Express East Coast (NXEC) will hand over control to a publicly-controlled company at one minute before midnight next Friday, November 13.

NXEC staff will transfer across to the new operator, Directly Operated Railways, trading as East Coast, which will also be based in Skeldergate, York.

Ian Williams, director of policy at York and North Yorkshire Chamber of Commerce, said today that the Yorkshire and Humberside economy was heavily dependent on the East Coast Main Line for its connections to the capital and beyond, and it was crucial for the continued success of the region’s business and tourism industries.

“While the chamber acknowledges why the line has been handed back to the Government, it is important to make sure there is no reduction in the quality or frequency of services,” he said.

Transport Minister Lord Adonis, who issued a formal termination notice to the company on Wednesday night, has assured travellers services will continue without disruption and all tickets will be honoured.

Services are likely to remain in public hands until 2011, when they are set to be privatised again, despite calls by unions and MPs, including York’s Hugh Bayley, for the Government to consider keeping them in public ownership.

National Express, which bought the franchise to run trains from London to Scotland via York in 2007, was committed to pay £1.3 billion in payments under the original franchise. However, the recession hit passenger revenues, and efforts to ease the terms of the deal foundered earlier this year.

NXEC said yesterday that during the last five months it had worked with the DfT and the proposed new operator to ensure an orderly handover.

News that the service will be nationalised next week comes only days after the Rail Maritime and Transport union claimed it would happen in December.

General secretary Bob Crow said he welcomed news that the Government had “brought forward” the date.

He said: “We will be meeting ministers to demand that this renationalisation is made permanent rather than an expensive short-term fix.”