Railways: Coronavirus

(asked on 30th June 2020) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, with reference to the COVID Emergency Management Arrangements (EMA) with Train Operating Companies, what steps his Department took to ensure that those companies had sought financial support packages in advance of entering into the EMA.


Answered by
Chris Heaton-Harris Portrait
Chris Heaton-Harris
Secretary of State for Northern Ireland
This question was answered on 8th July 2020

The Emergency Measures Agreements (EMAs) temporarily suspend the existing franchise agreements' financial mechanisms for an initial period of six months. They were developed at an early stage of the covid-19 crisis as a bespoke solution to address the particular circumstances of rail franchises. These include the fact that the government would face large and direct financial exposure via its obligations under the Railways Act if any franchise were to fail financially and become unable to operate its services. The EMAs include explicit provisions to prevent 'double recovery', ensuring franchisees cannot be compensated through the EMAs where funding from other government support schemes has been obtained.

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