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Written question asked by Lord Radice (Labour) on Wednesday, 17 January 2018, in the House of Lords. It was due for an answer on Wednesday, 31 January 2018. It was answered by Baroness Sugg (Conservative) on Monday, 29 January 2018 on behalf of the Department for Transport.

East Coast Rail Franchise

Question

To ask Her Majesty's Government, further to the Written Answer by Baroness Sugg on 13 December 2017 (HL3776), what compensation arrangements they have entered into in respect of the early surrender of the Virgin-Stagecoach east coast rail franchise.

Answer

As the Secretary of State announced in his statement to the House on 11 January 2018, we are not agreeing to early termination of a contract in 2020 but the franchise is not delivering the profits the operator expected. The Department is preparing contingency plans as we do not believe the franchise will be financially viable through to 2020. The Secretary of State will report back to the House when a decision is made on contingency planning.

It is important to understand that all premiums due to date under the contract have been paid and we currently receive premiums in line with their contractual obligations. From 2020 we intend to commence the East Coast Partnership, one of the first of a new generation of integrated regional rail operations. This will also include appropriate contributions from the new private partner under a long-term competitively procured contract.

Secondary information

Type
Written question
Reference
HL4844
Session
2017-19
Related items
East Coast Rail Franchise
Wednesday, 13 December 2017
Written questions
House of Lords
Subjects
Compensation Stagecoach Group Virgin Trains East Coast rail franchise
Contains statistics
Yes
Link
View this Written question on www.parliament.uk