Railways: Franchises

(asked on 10th June 2014) - View Source

Question to the Department for Transport:

To ask Her Majesty's Government whether newly negotiated rail franchises and franchise extensions include incentives for the train operator concerned to devote sufficient resources to revenue protection.


Answered by
Baroness Kramer Portrait
Baroness Kramer
Liberal Democrat Lords Spokesperson (Treasury and Economy)
This question was answered on 24th June 2014

Most franchise operators are on risk for revenue and are therefore incentivised to protect that revenue. However, we are conscious that where operators are in receipt of revenue support, in some cases it may be appropriate to strengthen the incentive, particularly later in the franchise term. The exact nature of the incentive or mechanism will vary by franchise.

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