Question to the Department for Transport:

To ask Her Majesty’s Government, further to the Written Answer by Lord Ahmad of Wimbledon on 16 January (HL4450), what were the uncertainties in Transport for London’s business case concerning the operational risks in splitting a franchise and the claimed benefits; how those differed from the risks in the Department for Transport’s own business case for a single franchise; how the risks associated with a split franchise differed from the risks on other lines where there is more than one franchise operator; and what comparative assessment they have made of the benefits to passengers using services provided by London Overground.

The Department for Transport carefully considers business cases from scheme promoters on a regular basis. In terms of Transport for London’s business case, there were a number of uncertainties concerning the operational risks in splitting a franchise. These uncertainties included:

• The impact of devolution on overall operational performance across the whole of the South Eastern network;
• The increased pressure on stabling capacity further to devolution and the lack of detail on the necessary resultant investment; and
• Inefficiencies such as those arising as a result of splitting staff and management systems across two organisations following devolution.

Many of the benefits claimed by Transport for London (TfL) in their business case were not resourced, and could be implemented through the upcoming franchise without incurring the significant costs of splitting services or the risks outlined above.

The Department’s business case for the South Eastern franchise takes into account a wide range of risks and opportunities for the franchise and the Department does not comment on these at this stage in the franchise competition process.

Each franchise is different and has unique operational circumstances and it would not, therefore, be appropriate to compare the risks associated with splitting the South Eastern franchise against risks on other lines where there is more than one franchise operator.

The Department has fully considered the Business Case TfL presented which included detail on the benefits provided to passengers on London Overground.