Jim Cunningham – 2014 Parliamentary Question to the Department for Transport

The below Parliamentary question was asked by Jim Cunningham on 2014-06-11.

To ask the Secretary of State for Transport, what steps he is taking to monitor London Midland’s (a) budgeting and (b) contractual relationship with Siemens for maintenance work on the Desiro EMU fleet.

Stephen Hammond

London Midland provide their Management Accounts to the Department every period. In addition, we receive an annual Business Plan and quarterly forecasts of future revenues and costs for the following twelve months. These are reviewed by qualified management accountants within the Department and challenged with the London Midland senior management team at meetings with a view to assessing the ongoing viability of the TOC.

Responsibility for monitoring the maintainer rests with the TOC who are responsible for delivering a required performance and availability benchmark through their Franchise Agreement.