26.01.17
DfT told to stop ‘ducking’ Southern contract issue and make up its mind
The Transport Select Committee has urged the DfT to hurry up in deciding whether Southern is failing to run adequate services, arguing that ministers cannot “duck” the issue further and should come to a conclusion urgently.
But rail minister Paul Maynard has claimed that the DfT cannot yet consider terminating or restructuring GTR’s contract due to the company’s claims for force majeure over industrial action that has been ongoing since 2015, leading to accusations that the government is dilly-dallying instead of improving the situation for passengers.
“GTR's claims for force majeure were made 10 months ago,” stressed Louise Ellman MP, chair of the committee. “While the Transport Committee appreciates the complexity of the situation, the department must state publicly whether the company is in default of its contractual obligations.
“The DfT has a duty to act decisively in the best interests of passengers and taxpayers. At the last forecast, the department had already incurred losses of £38m in revenue—a figure likely to rise. Ministers cannot duck this issue. The committee will continue to push for openness and clarity."
Maynard’s latest letter to Ellman reveals that the DfT has assessed the first three periods of GTR’s claim but the operator used its right to challenge the assessment, meaning that the department must now consider the challenge.
The DfT will not publish its assessment of GTR’s failures until the challenge has been considered, but there is yet no indication as to when this will be.
“Officials are currently considering the additional information provided and are in discussion with GTR,” Maynard wrote in his letter. “These discussions will determine whether the additional evidence provided is admissible and has any material effect on the assessment of the claim.
“I assure you that everything possible is being done to ensure this matter is brought to a close, and I am as frustrated as you are that we have yet to draw a line on this process.”
He added that the DfT expects to resolve the challenge “as soon as possible”.
However, the rail minister stressed that even if the department dismisses GTR’s claim and finds the operator to have breached its target, termination of the franchise is only discretionary and not “an absolute duty” for the government.
GTR’s ongoing problems have led to rumours that the DfT is considering assuming partial or full control of the franchise, either by separating Southern from GTR or taking direct control of the full franchise until a new contract could be let.
Yet the DfT has said that there are no plans to strip GTR of its franchise, dismissing the report as “pure speculation”.
Aslef and Southern are currently continuing talks to try to resolve their long-running row over driver-only trains after planned strikes were suspended last week. The franchise is currently running a full timetable despite continued action by a small number of RMT drivers, yet has been consistently finishing at the bottom of performance and satisfaction tables – including in the recent Transport Focus survey from this week and a Which? survey from earlier this month.
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