Rail: Great Western Passenger Franchise

Lord Bradshaw Excerpts

Tuesday 31st January 2012 Lords Chamber

[Earl Attlee]

My Lords, I hope that the noble Lord contributes to the consultation, because he makes some valid points.

[Lord Bradshaw]

My Lords, will the Minister address his mind to the fact that, on many of the franchises throughout the kingdom, the carriages in use are full to overflowing, but the Department for Transport holds the trump card in the acquisition of new rolling stock, because it has to give permission before that can be done? Under the new franchise, does he envisage that whoever wins it or other franchises will have reasonable freedom to negotiate, without the dead hand of the department?

[Earl Attlee]

My Lords, the reason why it is necessary for the department to have the final say is so that it could take over the franchise and run the rolling stock. The noble Lord, Lord Snape, talked about the franchisee handing in the keys. Franchisees might want to do that if they negotiated a rolling stock agreement that had a balloon payment right at the end. Obviously, the department would refuse that. We are very keen that bidders are able to negotiate freely with the rolling stock companies, with the exception of the IEP, on this franchise.