East Coast Railway Line

Transport written question – answered on 30th March 2010.

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Photo of Stephen Hammond Stephen Hammond Shadow Minister (Transport)

To ask the Minister of State, Department for Transport when the Secretary of State decided not to impose penalties on National Express as a consequence of its defaulting upon the East Coast rail franchise.

Photo of Chris Mole Chris Mole Parliamentary Under-Secretary, Department for Transport

I refer the hon. Member to my answer of 29 March 2010, Hansard, column 760W.

As a consequence of an event of default under its contract, the National Express East Coast rail franchise was terminated on 13 November 2009. In terminating the franchise, the Secretary of State exercised his contractual rights under the Franchise Agreement with National Express East Coast.

The termination of this franchise also created a default under the terms of National Express East Anglia franchise and the Secretary of State notified National Express East Anglia on 25 November 2009 that its franchise would terminate on 31 March 2011. Without this default, it could have been extended to 2014.

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