Railways: Franchises

Lord Bradshaw asked Her Majesty’s Government what steps they have taken to prepare for public control of a railway franchise in the event of a train operating company defaulting on its franchise agreement.
Lord Faulkner of Worcester: My Lords, can my noble friend confirm that it is not his intention to allow franchise holders who may get into trouble mid-term to renegotiate the terms of their franchise? Does he agree that, if they were able to do so, that would send out entirely the wrong message for future franchise bids because the winners would be those who told the biggest whoppers about their projections rather than those who offered the best value for money?

© Lords Hansard 23 March 2009