Train Operating Companies: Compensation

Department for Transport written question – answered on 21st June 2018.

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Photo of Ian Mearns Ian Mearns Chair, Backbench Business Committee, Chair, Backbench Business Committee

To ask the Secretary of State for Transport, with reference to the Answer of 15 May 2003 to Question 113237 on rail strikes, whether rail franchise agreements still contain clauses to allow train operators to claim reimbursement of revenues lost as a result of official industrial action.

Photo of Jo Johnson Jo Johnson Minister of State (Department for Education) (Universities and Science) (Joint with the Department for Business, Energy and Industrial Strategy), Minister of State (Department for Transport), Minister of State (London)

All franchise agreements contain a standard clause under which train operating companies may approach the Secretary of State with a request for compensation for net losses that arise out of industrial action.

Our records show no compensation payments under this clause have been made to train operating companies since 2006.

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