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Railways: Franchises

Volume 488: debated on Tuesday 24 February 2009

To ask the Secretary of State for Transport what criteria his Department uses to assign red light status to a rail franchise in its assessment of the financial position of train operating companies. (257008)

The Department for Transport uses a number of criteria in its routine reviews of the operational and financial performance of train operating companies. These include an examination of forecast costs and revenues going forward, as well as an analysis of wider economic forecasts that might have an impact on the franchise in question.

To ask the Secretary of State for Transport what the value was of the bond deposited by each of the train operating companies awarded a rail franchise. (257010)

The value of bonds deposited by train operating companies are based on a formula relating to the assessed costs of the franchise in question. As such the values of the bonds are commercially confidential.