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(asked on 20th September 2023) - View Source

Question to the Department for Transport:

To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 20 September (HL10070), whether, when a train is not provided or runs in reduced formation (such as having five carriages instead of ten), the revenue of the train provider is reduced proportionately; and whether there is provision for the train provider to pay liquidated damages to the train operator to compensate them for the reputational damage and for any compensation paid to passengers in such cases.

Answered by
Baroness Vere of Norbiton Portrait
Baroness Vere of Norbiton
Parliamentary Secretary (HM Treasury)
This question was answered on 27th September 2023

The Intercity Express Programme contracts requires the daily provision of trains of the correct formation to operate the planned timetable.

As there has been full transfer of delivery risk passed to the train supplier, when a train provided that is shorter than that planned there is a reduction in the lease charge.

The effect of this is that Hitachi will suffer the financial impact of these circumstances arising from the loss of income.

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