Train Operating Companies: Finance

(asked on 23rd September 2020) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, with reference to the Written Statement of 21 September 2020, HCWS460 on Rail Update, what estimate he has made of the level of debt that operating companies on Emergency Recovery Measures Agreements have to the Government; and if he will take steps to guarantee that any monies owed to the public purse by franchised operators will be collected in full before any profits are paid by the taxpayer to those companies.


Answered by
Chris Heaton-Harris Portrait
Chris Heaton-Harris
Secretary of State for Northern Ireland
This question was answered on 1st October 2020

The Emergency Recovery Measures Agreements (ERMAs) and underlying franchises contain a number of protections. Franchisees have obligations to settle any payments or debts owed to the Government in a timely manner. Shareholder distributions are restricted by the terms of the ERMAs to prevent shareholder payments unless and until franchise agreement financial obligations have been fulfilled to the satisfaction of the Department, which would include settling any overdue debts to Government.

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