Oral Answers to Questions
Debate between Derek Twigg and Stephen Hammond(11 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Stephen Hammond
I have listened carefully to what my hon. Friend has said. He will obviously want to recognise the huge amount of investment that is going into the railway network, including £70 million around Kettering. I will look closely at his request in the context of the franchise renegotiations.
Derek Twigg (Halton) (Lab)
A lot of work has been done locally to assess the possibility of reopening the Halton curve, which would improve the links between Merseyside and Liverpool and all the way down to Shropshire, as well as across to north Wales. Will the Minister do all he can to expedite that project, which would benefit Merseyside, Cheshire and Wales?
Stephen Hammond
Again, I am sure that the hon. Gentleman will recognise the huge amount of investment that is going into the railways under this Government. We recognise the benefit of that. It is for Network Rail to prioritise these matters, along with the local train operators and the local authorities. Should he want to write to me about this particular scheme, I would be happy to look into it in more detail.
West Coast Main Line
Debate between Derek Twigg and Stephen Hammond(12 years, 3 months ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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Derek Twigg
I do not want to pursue the matter for too long, because time is short. If the Government’s projections for GDP, which the bids were based on, is low—the Minister has not said whether one bidder put in a lower projection, despite the Government’s figures—will the Government have to give money back to the successful bidder?
Stephen Hammond
My understanding of the GDP process currently in place is that there would be either payments back to the Government or payments from the Government. I will write to the hon. Gentleman about that.
I make it clear that GDP was only one of the external factors; it was not the only external factor. To ensure that the Government are further protected, a profit share mechanism has also been introduced. The mechanism will enable the taxpayer to benefit from a share in any super profits that the franchise generates while continuing to provide an incentive for the franchisee to outperform.
The hon. Member for West Lancashire asked a number of questions about the Government’s preparations, should the franchise end without a new franchisee being in place. I make it clear that the existing contractor has a contractual obligation to support handover activities. On the 120 days to which she referred, a departmental mobilisation manual is being used by both parties in every franchise to ensure that a franchise handover process is in place, and the activities and time scales required to effect a transfer are set out. The Government are confident that the Department is putting in place the right contingencies in the time scale, should the process not be completed. We expect the legal issues to be resolved so that contingency plans will not be necessary.