Lord Bradshaw – 2014 Parliamentary Question to the Department for Transport

The below Parliamentary question was asked by Lord Bradshaw on 2014-06-10.

To ask Her Majesty’s Government whether newly negotiated rail franchises and franchise extensions include incentives for the train operator concerned to devote sufficient resources to revenue protection.

Baroness Kramer

Most franchise operators are on risk for revenue and are therefore incentivised to protect that revenue. However, we are conscious that where operators are in receipt of revenue support, in some cases it may be appropriate to strengthen the incentive, particularly later in the franchise term. The exact nature of the incentive or mechanism will vary by franchise.