TfL’s 30 Year Contract with First Group TOL (2)

Questions to the Mayor of London – answered on 8th January 2021.

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Photo of Keith Prince Keith Prince Conservative

In fact a “Trams Update Note”, dated 25 May 2017 and released in response to Question 2019/17340, clearly shows that TfL did in fact consider terminating the TOL contract but decided it was not possible because (a) the Operating Agreement does not contain any rights to step in and take over operations in the event of a failure of service (or any other reason) (b) TfL would still be required to pay First Group fees less profit even if the Agreement were suspended owing to First Group’s breach; and (c) TfL’s rights to terminate for First Group’s default are limited and, in practice, will be difficult to enforce.

Will you amend your answer to Question 2019/0150 to what appears to be the truth: that you did consider ending First Group TOL’s contract but concluded that you were unable to do so?

Photo of Sadiq Khan Sadiq Khan Mayor of London

I refer you to my answer to Mayor’s Question 2020/4105. Of course it was right for possible legal avenues to be considered but I gave you my answer which was that there were no plans at the time to change the contractual arrangement in place.