§ Chris GraylingTo ask the Secretary of State for Transport, Local Government and the Regions what estimate he has made of the(a) capacity and (b) levels of usage of the rail network to carry individual services. [28548]
§ Mr. SpellarThe Strategic Rail Authority has carried out numerous studies to gauge rail use and travel patterns in order to help determine priorities for investment. It has also carried out specific capacity studies to determine where enhancement is required. The priorities for investment have been identified in the authority's strategic plan.
§ Chris GraylingTo ask the Secretary of State for Transport, Local Government and the Regions if he will make a statement on the changes to subsidy resulting from the implementation of cost plus agreements on the railways. [28561]
§ Mr. SpellarUnder 'cost plus' agreements, the franchisee does not commit to a subsidy/premium profile for several years at a time. Instead, the franchisee is paid an agreed margin on the costs it is expected to incur in running the franchise in the coming year.
865WProlonging these arrangements has led to a number of problems and the Strategic Rail Authority intends, as soon as possible, to replace those franchises on 'cost plus' terms with longer-term franchise contracts negotiated through competitive processes.