Written question asked by Lord Berkeley (Labour), in the House of Lords. It was answered by Lord Bassam of Brighton (Labour) on Wednesday, 24 January 2007.

Railways: West Coast Main Line

Question: asked Her Majesty's Government:Further to the Written Answer by Lord Davies of Oldham on 9 January (WA 74), why they did not follow their stated policy of re-tendering franchises in the case of the west coast main line rather than renegotiating the franchise from a contribution of over £1 billion to the Government to a subsidy of £1,552 million over the period 2006 to 2012.

Answer: The Department for Transport does not renegotiate franchises. The original franchise agreement term was until 2012 and based on certain assumptions that Network Rail would deliver contractual commitments by 2005. The letter of agreement provided for services to continue to be provided while the reconfigured west coast modernisation project was completed. The reinstatement of the franchise agreement provides better value to the tax payer and benefits of continuity to the passenger than the buying-out of the franchise from Virgin and re-tendering through the franchise replacement process earlier than the contractual term ending in 2012.

Secondary information

Type: Written question
Reference: 1366; 688 c244WA
Session: 2006-07
Related items: Railways: West Coast Main Line
Tuesday, 9 January 2007
Written questions
House of Lords
Subjects: Costs Franchises Railways West Coast main line
Link: View this Written question on www.publications.parliament.uk