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Rail Fares and Franchises

We would always seek to avoid such protection arrangements that produce perverse incentives, such as discouraging operators from investing in the promotion of additional journeys because the benefits would not accrue to them, but return to the Department. As I was saying, in assessing bids, we intend to place greater weight on additional ideas and options generated by bidders. We are looking at rewarding franchisees that come up with investment or improvement proposals to be delivered after the contract term. We need to keep a strong focus on performance and make sure franchisees deliver for passengers. All rail franchises incorporate performance requirements, which we monitor closely. We aim to ensure that all rail franchise commitments are delivered, that franchise agreements are complied with and that, if appropriate, the taxpayer is reimbursed when operators do not deliver the obligations in their franchise agreements.