Railways: London Midland Rail Franchise

Lord Hughes of Woodside Excerpts

Wednesday 31st October 2012 Lords Chamber

[Earl Attlee]

My Lords, it would be premature to terminate the franchise at this point. There are severe penalties for breach of franchise. The noble Lord’s analysis of the problem may be right. However, it is important to understand that all train operating companies rely on rest-day working but only to the extent of about 3% or thereabouts, whereas this operator is now in the region of 6%. A shortage of drivers causes a serious problem for that operator but it is the train operating company’s problem.

[Lord Hughes of Woodside]

Can the Minister tell us what the benchmark is?

[Earl Attlee]

My Lords, the short answer is no; the longer answer is that it is a moving annual average. The train operating company has the benefit of earlier good performance. However, if it carries on with the current trajectory, it will be in serious difficulties.