§ Mr. Hill
Subsidy is paid to the railway industry in recognition of benefits which cannot be captured through the passenger fare box or freight charges. The conditions attached define what is to be delivered. Passenger franchise agreements provide for penalties for poor performance by train operators. There is a penalty and incentive regime for Railtrack and the Rail Regulator has powers, strengthened by the Transport Act 2000, to enforce Railtrack's compliance with the conditions in its licence to operate the rail network. Dividends for shareholders are for the companies to decide.