§ Mr. GapesTo ask the Secretary of State for Transport what redress is available to Opraf in the event of a rail franchise operator(a) failing to comply with the terms of the passenger service requirement for the franchise and (b) failing to complete the full time scale of the franchise. [4051]
364W
§ Mr. WattsThe passenger service requirement—PSR—forms part of the franchise agreement. Franchisees are required, within their access agreements with Railtrack, to ensure that the services set out in the PSR are in the timetable. Failure to use all reasonable endeavours do so is an event of default. Franchisees may also commit either a breach of the franchise agreement or an event of default if they fail to meet thresholds for reliability set out in the agreement. In addition, some operators will be penalised under the incentive regime for delays or cancellations for commuter and regional services.
If there is a breach of the franchise agreement, the franchising director may serve an enforcement order requiring compliance. Failure to comply is an event of default. If an event of default occurs, the franchising director has the power to terminate a franchise and to call the performance bond. All franchisees are required to subscribe a percentage of the initial level of capital required by the franchising director to underwrite the franchise to fund a performance bond. The performance bond will be used to contribute to any additional costs or liabilities which the franchising director or a successor operator may incur due to, among other things, premature termination of the franchise.