Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, pursuant to the Answer of 22 June 2020 to Question 60669, whether there have been changes to the pre-Emergency Measures Agreements obligations requiring train operators to provide periodic management accounts to his Department and the two operators that are in direct public ownership in relation to management accounts, profit and loss account, balance sheet and cash flow statements.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Emergency Measures Agreements (EMAs) continue existing Franchise Agreement obligations on train operators to provide management accounts to the Department for each 4-week rail period. An equivalent obligation also applies to the two operators that are in direct public ownership. The EMAs include an additional provision that requires the management accounts to show greater disaggregation of the periodic profit and loss account, to allow more detailed scrutiny of expenditure by the Department.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to the condition on the additional funding to TfL that Government officials will attend TfL board meetings, whether his Department plans to appoint an external advisor to the board of each train operator with a franchise agreement with his Department.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Secretary of State has not appointed an external advisor to train operator boards and has no immediate plans to do so. The Emergency Measures Agreements (EMAs) give the Department enhanced controls over financial decisions made by train operators. This includes a formal process of monthly budget reviews, allowing additional financial scrutiny of operators, with the ability for the Department to deem expenditure disallowable, in which case the train operator would have to bear the costs.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether each train operator with a franchise agreement with his Department has been asked to provide options for revenue maximisation such as reference to fares and revenue yield choices over time.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Emergency Measures Agreements (EMAs) require operators to act in in a commercial manner in relation to the management of revenues and costs. This includes implementing initiatives to protect and grow revenue.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether each train company with a franchise agreement has been asked to identify opportunities it is pursuing for further efficiencies in relation to operating costs in the (a) short and (b) medium term.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Emergency Measures Agreements (EMAs) require operators to act in in a commercial manner in relation to the management of revenues and costs.
The Department has required operators to identify and implement cost reductions for the EMA term. The EMAs have also introduced a formal process of periodic budget reviews to enable additional financial scrutiny of operators.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether each train company with a franchise agreement has been asked by his Department to provide evidence of its potential to raise additional (a) non-fare revenue and (b) commercial income.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Emergency Measures Agreements (EMAs) require operators to act in in a commercial manner in relation to the management of revenues and costs. This includes implementing initiatives to protect and grow both passenger and non-passenger revenue.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what estimate he has made of the additional funding provided by Government in (a) March, (b) April and (c) May 2020 to (i) Thamselink, (ii) c2c, (iii) Southern, (iv) Chiltern, (v) South Western, (vi) Greater Anglia, (vii) Southeastern, (viii) Gatwick express and (ix) London northwestern.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
This information has not yet been finalised.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether he (a) has appointed, or (b) intends to appoint an external advisor to the board of each train operator with a franchise agreement with his Department.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Secretary of State has not appointed an external advisor to train operator boards and has no immediate plans to do so.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether each train company with a franchise agreement has been asked by his Department to undertake a review of its approach to capital spending in relation to (a) asset maintenance and (b) enhancement.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Emergency Measures Agreements (EMAs) require operators to act in a commercial manner in relation to the management of revenues and costs.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to the condition on the additional funding to TfL that Government officials will attend TfL board meetings, whether Government officials will attend the board meetings of each train operator with a franchise agreement with his Department and report back on the use of additional resources provided to them in response to the covid-19 outbreak.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Secretary of State has not appointed an external advisor to train operator boards and has no immediate plans to do so. The Emergency Measures Agreements (EMAs) give the Department enhanced controls over financial decisions made by train operators. This includes a formal process of monthly budget reviews, allowing additional financial scrutiny of operators, with the ability for the Department to deem expenditure disallowable, in which case the train operator would have to bear the costs.
The funding and financing package for TfL amounts to £1.6 billion.
Asked by: Karen Buck (Labour - Westminster North)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans he has to undertake a review of the future financial (a) position and (b) structure of each train operating company that holds a franchise agreement with his Department.
Answered by Chris Heaton-Harris - Secretary of State for Northern Ireland
The Department is reviewing its approach to the contractual arrangements following the period in which the Emergency Measures Agreements apply. Work is underway to determine the most effective approach once this period ends. This work will take account of the impact of COVID-19 on demand for passenger rail travel in both the short and long term, and the associated economic and financial impacts on the railway.
The Department continues to monitor the financial position of all train operators to ensure to continuity of passenger services.