Supplementary memorandum by Porterbrook
Leasing Co Ltd (OPT 30)
APPEARANCE OF PORTERBROOK LEASING COMPANY
BEFORE THE TRANSPORT COMMITTEE—WEDNESDAY 26 FEBRUARY 2003
During the Transport Committee's interview of
the three ROSCOs on the 26 February a number of questions arose
concerning levels of SRA support for operating leases provided
by ROSCOs to Train Operating Companies.
By way of clarification I have attached a brief
summary of the main provisions of both the Direct Agreements and
the OPRAF/ROSCO Agreement, insofar as they relate to our own operationally
leased vehicle fleets (see Annex A and B).
I hope that this will provide the Committee
with the information they require to understand how the SRA can
choose to step into any lease arrangement in the event of lessee
default.
SECTION 54 AND
THE 20 YEAR
SOUTH CENTRAL
ROLLING STOCK
LEASE
In addition to the Direct Agreements and the
OPRAF/ROSCO Agreement there was also some discussion as to what
undertakings, under Section 54 of the Railways Act 1993, might
be given by the SRA to a ROSCO in support of lease durations that
exceed the length of the franchise.
I wish to make it clear that the provision of
such an undertaking is currently "very much the exception
rather than the norm". Currently, Porterbrook only has one
such Section 54 undertaking, and this is in respect of our lease
of Electrostar vehicles to the South Central franchise.
The original intention of the undertaking given
was that it would fall away at the point that a new 20 year franchise
with Govia/South Central was entered into by the SRA. Thereafter
Porterbrook would have fully relied upon the provisions of the
Direct Agreement as detailed in the attached note.
The only change to this position is as a result
of the truncation of the South Central franchise from 20 years
to 7 years. As a consequence of this change we are currently involved
in discussions with the SRA as to how our original 20 year rolling
stock lease with South Central can be supported.
PORTERBROOK ACCOUNTS
As requested by the Committee I have enclosed
copies of the latest filed Statutory Accounts in respect of the
Porterbrook group of companies. (not printed).
I hope that this information is of assistance
to the Committee and should you have any further questions please
feel free to contact me.
Paul Francis
Managing Director
March 2003
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