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Railways: Franchises

Volume 505: debated on Wednesday 3 February 2010

To ask the Minister of State, Department for Transport what estimate he has made of the financial costs incurred by his Department when re-tendering each rail franchise since 2005. (314278)

The total costs incurred by the Department for Transport in designing and tendering rail franchises from 2005-09 were £33.8 million, which comprises the following:

Departmental staff, administration and non-franchise specific adviser costs for undertaking the specification, procurement and review of franchising documentation over this five year period was £15.3 million. To allocate such costs by franchise would incur disproportionate cost.

External adviser costs for the franchises let by the Department 2005-09 were as follows:

£ million

Southeastern1

2.0

Thameslink1

1.4

Greater Western1

1.3

South Western

2.2

London Midland

2.9

East Midlands

2.6

Cross Country

3.2

Intercity East Coast (2007)

1.3

Southern

1.6

1 Replacement initiated by the Strategic Rail Authority, concluded by the Department, the costs for which are identified.