Memorandum by Department for Transport
Thank you for your letter of 18 October about
rail passenger operations and the circumstances in which the Government
might be prepared to renegotiate a franchise agreement.
Changes to franchises at the detailed level
are common. Franchises often last for 10 years or more and changes
will inevitably be needed from time to time to take account of
changing circumstances. The Department, franchise holders and
others may well seek alterations, for example, to stopping patterns
for individual trains or a complete service. Because franchise
agreements typically specify services to this level of detail,
an amendment to the contract will generally be needed to allow
changes of this sort to happen. I expect routine changes of this
sort to continue. You may also know that we are seeking to replace
our existing year-by-year agreement with Virgin West Coast with
a conventional franchise. This, though, will depend on achieving
a deal which represents good value for money. We are in any case
looking at this with a view to moving to a proper franchise comparable
to others around the network rather than as a response to any
approach from the operator.
We have, on the other hand, made it very clear
more generally that we are not prepared to renegotiate the main
terms on which a franchise was awarded in the first place other
than in circumstances where doing so would clearly benefit the
public purse. That remains the case. It is difficult to say that
there will never be any circumstances in which we would set that
policy aside. What I can say is that I cannot currently foresee
a situation in which we would be prepared to do so.
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