Rail Disruption: Social and Economic Impacts

Lord Bradshaw Excerpts

Thursday 13th May 2021 Lords Chamber

[Lord Bradshaw (LD) [V]]

My Lords, the question of compensation arises here. Is there a liquidated damages clause in the agreement between the Government and Hitachi about these trains? If not, can Hitachi be pressed to make some ex gratia compensation payment for the huge damage that this delay is inflicting on both passengers and railway staff, through no fault of their own?

[Baroness Vere of Norbiton (Con)]

Of course, we are in conversations with Hitachi, and we welcome its decision to put safety first and take the trains out of service while we properly understand what is going on. As noble Lords will be aware, 122 Hitachi trains are procured via the intercity express programme, while the remaining 60 are under conventional rolling stock leases. We will look into what potential compensation may be forthcoming from Hitachi, but the train operating companies are offering refunds to their passengers for cancelled services.