Rail passengers on the country’s most overcrowded routes face up to two years of cramped conditions because train companies are refusing to order extra carriages unless their contracts are extended (link below.)
http://www.rmtbristol.org.uk/2007/09/squabble_over_extra_carriages.html#more

Passenger groups say that the dispute between the train companies and the Government underlined the need for reform of the franchise system. They argue that squabbles over profits stop the network from expanding.

Virgin West Coast and First TransPennine Express , are negotiating with the Department for Transport over the delivery of 150 carriages. Demand for both services is at record levels and crowding on them is expected to worsen.

Both companies are demanding a compensation deal for the new carriages , arguing that accepting them will cause disruption and add to maintenance and running costs. In both cases , the carriages would be bought by rolling stock companies and leased to the operators , with the costs partly underwritten by the Government.

A DfT source said the department would not be forced into accepting a deal with a train company that did not offer value for money for passengers and taxpayers.

Passenger Focus , the government-funded watchdog , said that demands for compensation by private rail companies were delaying the expansion of the network. Quote :

"There is a weakness in the system because the Government or Network Rail has to pay compensation when it wants to improve the railways. You see the bizarre situation where a train company is compensated when a station is being upgraded even though the work will benefit everybody.”

The DfT is bracing itself for more disputes with other companies as it seeks to introduce a total of 1,300 new carriages by 2014.