§ Lord Bradshawasked Her Majesty's Government:
Whether the interim agreement entered into by the Strategic Rail Authority and Virgin Rail Group in July 2002 allows for the stringent evaluation procedure at the negotiation to fail to reach an agreement satisfactory to the taxpayer; and, if so, what would then be the result. [HL2235]
§ Lord Davies of OldhamThe interim agreement contemplates a conclusion of negotiations, whether successfully or otherwise. It does not prescribe what either party to the negotiations must do in such circumstances. The taxpayer's interests are protected through control of the budgets for both franchises. Depending upon the outcome of the negotiations and annual review of the budgets, it is possible that the interim agreements would remain in force until 2012, when both franchises expire, or that either or both franchises may come to an end earlier.