Railways: London Midland Rail Franchise

Lord Harris of Haringey Excerpts

Wednesday 31st October 2012 Lords Chamber

[Earl Attlee]

My Lords, I agree with the noble Lord that the ticket system is very complicated and no one has fully grasped the nettle, as yet, to put in place a better system.

[Lord Harris of Haringey]

My Lords, the noble Earl has repeatedly talked about the moving annual average. Does this mean that the rail company concerned is able to claim that it is always an average year in terms of its performance, in that it is worse than last year and better than next year?

[Earl Attlee]

My Lords, first, it is important to understand that the TOC has a target of continuously improving performance. Secondly, we need to understand that the penalties for breaching the contractual obligations are actually quite serious; so under the system of measuring performance it is possible for the TOC to have a few bad weeks and not be in breach of contract, but if it continues in that way, it will, under the terms of the franchise, eventually end up in breach of contract and be vulnerable to serious consequences.