Select Committee on Public Accounts Minutes of Evidence


FRANCHISE AGREEMENT DATED 19 FEBRUARY 1997 BETWEEN THE DIRECTOR OF A PASSENGER RAIL FRANCHISING AND VIRGIN RAIL GROUP LIMITED ("the Franchise Agreement")

Copy of a letter to Virgin Rail Group Ltd

  Pursuant to Section 55(6) of the Railways Act 1993 (the "Act") I am recording a contravention of the terms of the Franchise Agreement by the Franchise Operator as set out in the Schedule annexed hereto.

  The Director of Passenger Rail Franchising (the "Franchising Director") considers that the Franchise Operator has taken and has agreed to take in the future such steps as are appropriate for it to take for the purpose of securing or facilitating compliance with the relevant condition(s).

  In considering the steps which are appropriate to secure or facilitate compliance by the Franchise Operator, the Franchising Director has had regard in particular to the action taken by the Franchise Operator to revise its arrangements to provide the specified seating capacity on certain of the rolling stock diagrams relevant to the affected Passenger Services; and to the Franchise Operator's agreement to a variation of the Franchise Agreement which amends the relevant condition(s), as documented in the Franchise Operator's letter of 22 July 1997 attached hereto.

  Please also note that a copy of this letter will be placed on the Franchising Director's register as required by Section 73(2)(e) of the Act. The Franchising Director also considers that no further publication of the contravention is necessary.

for and on behalf of

the Franchising Director

25 July 1997

SCHEDULE

  1.1 Words and expressions defined in the letter to which this is a Schedule shall, unless expressly stated otherwise, bear the same meaning herein.

  1.2 Words and expressions defined in the Franchise Agreement shall, unless expressly stated otherwise, bear the same meaning herein.

  1.3 Nature of the contravention of the Franchise Agreement

    In Reporting Period 13 1996/97 and in Reporting periods 1, 2, 3 and 4 1997/98 the Franchise Operator exceeded the Call-in Threshold of Planned Capacity and the Breach Threshold of Planned Capacity as set out in Part 2 of Schedule 3 of the Franchise Agreement.


 
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