Northern: 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, what provision there is in the current Northern Rail franchise agreement for the train operator to be reimbursed by the government for 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)

As provided for in all franchise agreements, the Secretary of State, in his discretion, may at any time decide to reimburse or ameliorate net losses of the Franchisee arising from Industrial Action (however caused and of whatever nature) in circumstances where the Franchisee has demonstrated to the satisfaction of the Secretary of State that it has taken all reasonable steps to avoid the Industrial Action and that, Industrial Action having nevertheless occurred, the Franchisee has taken all reasonable steps to mitigate its effects.

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

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