Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Transport:
To ask Her Majesty's Government what estimate they have made of the cost to Her Majesty's Treasury of running train and bus services, under new arrangements put in place by the Government since the outbreak of COVID-19, in the month to 25 April, or until the latest date for which they can make an assessment.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Since the outbreak of COVID-19, the Government has approved £3.5 billion of additional expenditure to ensure that vital rail services continue to operate. From this additional expenditure, £2.9 billion relates to the 2020/21 financial year. It is not yet possible to provide an estimate of the total cost incurred to date.
In respect to bus services, the Government has made available up to £167 million of new funding over twelve weeks under the new COVID-19 Bus Services Support Grant (CBSSG), of which over £7 million has been paid to local transport authorities and over £41 million to bus operators as of 12 May.
Asked by: Lord Adonis (Labour - Life peer)
Question to the Department for Transport:
To ask Her Majesty's Government whether they have requested, or required, reductions in executive remuneration, bonuses and other executive benefits in return for additional subsidies of train and bus operators to operate services granted since 1 March; if not, whether they intend to do so; and if so, what such reductions have been or will be.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
To bring stability and certainty to the industry during this turbulent time, private sector train operating companies have seen a temporary suspension of their existing franchise agreements’ financial mechanisms, and all revenue and cost risk has been transferred to the Government. Emergency Measures Agreements (EMAs) commenced on 1 April 2020 (effective as of 1 March 2020) for an initial period of six months.
Under the EMAs, whilst basic pay will continue at the same levels as before the EMAs were agreed, any bonuses, rewards or discretionary benefits paid to any staff, directors or officers under any schemes which have not previously been approved by the Secretary of State in writing, are viewed as a disallowable cost.
In relation to bus operators, the COVID-19 Bus Services Support Grant (CBSSG) is designed to help bus operators cover the costs of operating an appropriate service level during the COVID-19 period. Executive remuneration and payouts are a disallowable expense for the purposes of this grant scheme.