Rail Franchise Agreements


Charles Walker calls for the franchise fee paid by One Railway to be better invested on new rail infrastructure and longer platforms.

Mr. Charles Walker (Broxbourne) (Con): On the subject of standing on trains, our local rail service, One Railway, suffers from extreme overcrowding. We are desperate for more capacity on the service, but one of the problems in providing that capacity is the franchise fee that One Railway pays each year to the Department for Transport, which is £50 million. Will the Secretary of State take a look at that franchise fee to see whether the money would be better invested on new rail infrastructure and longer platforms?

Mr. Alexander: I fear that the hon. Gentleman is labouring under a misapprehension. The premium payments by the franchisees do not go back to the Treasury, but are ring-fenced within the Department for Transport rail budget. It is exactly the kind of premium that he speaks of, as well as the sustained public investment, that accounts for the fact that 4,800 new trains and carriages have been purchased over the past 10 years.

 

| Hansard"