Question to the Department for Transport:

To ask the Secretary of State for Transport, whether the (a) payment of a management fee to a train operating company and (b) payment of a permitted dividend by the operator to its parent company is still permitted by his Department if a train operating company is responsible for (i) direct or (ii) indirect job losses.

As set out in the Emergency Recovery Measures Agreements (ERMAs), fees are calculated based on actual performance and financial efficiency. The ERMAs require train operating companies to act efficiently. If operators perform poorly then fees can be reduced to nil, dividends not permitted and potentially, further penalties incurred.