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Railways: Franchises

Volume 494: debated on Wednesday 17 June 2009

To ask the Minister of State, Department for Transport (1) what estimate he has made of his Department’s (a) actual and (b) potential liabilities under revenue support clauses in contracts with train operators in (i) 2008-09 and (ii) 2009-10; what assessment he has made of the effects of passenger number projections on those liabilities in each case; and if he will make a statement; (279581)

(2) what funding has been allocated to his Department to meet liabilities or potential liabilities under revenue support clauses in train operator franchises in (a) 2008-09 and (b) 2009-10;

(3) how much has been allocated from the rail budget for Control Period Four to cover revenue support clauses in train operator franchises.

The amount of any revenue support payable to eligible franchise holders is dependant on the performance of individual franchises and is set out in the relevant franchise contracts with the Department for Transport.

The Department’s internal forecasts for and amounts payable or receivable under these revenue sharing arrangements are commercially confidential.

To ask the Minister of State, Department for Transport what recent discussions he has had with the Chancellor of the Exchequer on funding to meet liabilities or potential liabilities under revenue support clauses in train operator franchises. (279592)

The Department for Transport has regular discussions with Treasury Ministers and officials on a range of issues concerning railway finances. Revenue support and sharing arrangements is one of these issues.

To ask the Minister of State, Department for Transport what proportion of the rail budget has been allocated to settle franchise disputes in Control Period Four. (279901)

The Government expect all operators to adhere to the terms of the contracts that they have entered into with the Department for Transport. As such, no specific funds have been allocated for the settlement of any disputes.

To ask the Minister of State, Department for Transport how many disputes were dealt with by the Rail Industry Dispute Resolution Committee in 2008-09; and at what cost to the public purse. (279902)

The Department for Transport does not hold information on the number of cases handled by the Rail Industry Dispute Resolution Committee. The hon. Member should write to the Committee itself at the following address:

John Gott

Railway Industry Dispute Resolution Committee

Central House

14 Upper Woburn Place

London

WC1H 0HY