The Rail Minister Chris Heaton-Harris says that since the outbreak of COVID-19, the government has approved £3.5 billion of additional expenditure to ensure vital rail services continue to operate.
He was answering a question by Gateshead MP Ian Mearns, who asked what estimates had been made of the total cost to the public purse of all emergency measures agreements on rail franchises.
Of this additional expenditure, £2.9 billion relates to the 2020/21 financial year. However, he says it is not yet possible to provide an estimate of the total cost incurred to date.
The Gateshead MP also asked what estimate has been made of how much each train operating company will receive as payment during the six months of Emergency Measures Agreements.
In response, Chris Heaton-Harris said: “Franchisees will be paid a maximum of 2% of the cost base of the franchise before the COVID-19 pandemic began, payable as a lump sum at the end of the initial 6-month Emergency Measures Agreement period. A proportion of the fee will be conditional on operators meeting performance, passenger experience and efficiency targets.”
In March as the country went into lockdown and passenger numbers massively reduced, UK rail franchises were converted to EMAs, with the taxpayer funding the costs.
In response the RMT says Government has serious questions to answer about the future of the railways.
RMT General Secretary Mick Cash said: “The Government must come clean about its plans for the future of our railways as these backroom deals to prop up and bail out train operating companies simply cannot continue long term.
“It’s time the Government used that money to invest in our railways and bring them under public control rather than keeping the failed system of privatisation on life support.”
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