HL Deb 08 January 2003 vol 642 c221WA
Lord Berkeley

asked Her Majesty's Government:

Whether they will publish the financial justification for the Strategic Rail Authority giving an extra £58 million of taxpayers' money to Connex to operate its rail franchise next year; and why this franchise was not cancelled and put out to retender, as provided for under Section 30 of the Railways Act 1993, as amended by Section 212 of the Transport Act 2000. [HL824]

Lord Macdonald of Tradeston

The Strategic Rail Authority (SRA) provided Connex with a further £58 million on 11 December 2002 to stabilise the loss-making franchise during 2003 and to allow negotiations to take place to establish an amended agreement for Connex to operate services to the end of 2006. Connex's franchise would then expire and be replaced by an all-Kent franchise, to include high-speed domestic services on the Channel Tunnel Rail Link to London St Pancras, for which the SRA plans to start a competition in 2004. It is the SRA's view that £58 million, as a minimum, would have been payable to any alternative operator in any other scenario.