Question to the Department for Transport:

To ask the Secretary of State for Transport, what incentives are included in the (a) Emergency Measure Agreements and (b) Emergency Recovery Measure Agreements for train operators to (i) reduce costs and (ii) increase revenues.

Under Emergency Measures Agreements (EMAs), Train Operating Companies could receive small performance related fees based on whether they have acted efficiently, including managing costs appropriately and protecting and generating revenue.

Following the expiry of the EMAs, operators have moved onto Emergency Recovery Measures Agreements (ERMAs), where a far higher proportion of the fee is based on performance than under the EMAs. Under ERMAs, operators are measured against a range of performance criteria, including financial efficiency. Further financial performance targets may be set by my Department within the ERMAs, which will be appropriately calibrated to ensure they promote financial efficiency and minimise the net cost to the taxpayer.