Question to the Department for Transport:
To ask the Secretary of State for Transport, what total financial support from the public purse will be given to West Coast Trains Ltd for the duration of the directly awarded passenger rail franchise announced on 19 June 2014; and what the deadline is for exercising the optional one-year franchise extension from April 2017 to April 2018.
The Department for Transport has contracted a premium payable to government of £433million over the course of the directly awarded passenger rail franchise to West Coast Trains Limited. In addition, the contract includes a provision which will trigger higher premiums to government if GDP growth is higher than forecast and lower premiums if GDP growth is lower than forecast (subject to minimum levels of movements in GDP from forecast). Notice must be provided to West Coast Trains Limited no later than 31 December 2016 of any intention to exercise the up to one year franchise extension.