South-Eastern Rail Franchise
Debate between Andrew Jones and Teresa Pearce(5 years ago)
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Andrew Jones
My right hon. Friend makes a very important point. He is a diligent campaigner on rail issues for his constituency. We saw that at an important level when there was the landslip earlier this year. He was a great champion in making sure that the voices of his travelling constituents were heard in this House. I cannot yet tell him when we will be making the announcement on the decision on who wins the south-eastern franchise competition, but I can tell him that I am extremely keen to get the benefits that the franchise will bring to his constituents. I will make sure that he is kept fully posted on progress.
Teresa Pearce (Erith and Thamesmead) (Lab)
There appears to be a serious issue around rail pensions. The Minister has said that there are two pension-compliant bids on the table. Could he tell me whether the Department has made any changes to the franchise specifications in respect of pension obligations, and what conversations have been held with the Pensions Regulator regarding the deficit?
Andrew Jones
The Pensions Regulator is an independent body and the pensions that we are talking about are those of private companies, so the role for the Government is not a direct one. Operators are currently liable for the full pensions risk during their franchise term. These competitions—including the east midlands competition, which was mentioned by the hon. Member for Nottingham South (Lilian Greenwood)—included a risk-sharing mechanism with the Government that actually reduced the risk to which operators are exposed. Under this mechanism, the operators retain risks that they are able to manage. There have been some changes, but they are about risk-sharing for the future; so there was a notable change in the franchises.