IT is with some dismay that I read in The Northern Echo that the companies selected to run North-Eastern rail franchises could be overseen by local authorities (Echo, Sept 1).

Councillors have little expertise in this field compared to the large German, British, Dutch and French companies bidding for the franchises. They already run railways.

Councils would insist on putting the customer first and this policy generally leads to disaster.

The first duty of a company is, of course, to its shareholders and always has been, be they individuals or pension-funds or large investors.

If you pay decent dividends to these investors, they will invest more, making your company richer and enabling you to keep your customers happy.

If you don’t pay them decent dividends they will go somewhere else and so will your unhappy customers.

There are exceptions of course.

My point is don’t let councils and councillors have a say in anything major.

Let them sit on subcommittees where they can discuss station car parking and toilets and fill in their claims for expenses.

The bidders are professionals in their field and must be allowed a clear field. They know best how to fill their trains.

Anyone remember a daft local-authority led scheme for a Teesside metro system a few years ago? Once serious railway operators looked at it it died an instant death.

Dave Hodgson, Richmond.