Question to the Department for Transport:

To ask the Secretary of State for Transport, what restrictions he plans to place on the payment of dividends by train operating companies as a condition of the Emergency Recovery Management Agreements.

Franchisees will remain in ‘lock-up’ for the duration of the Emergency Recovery Management Agreements (ERMAs), meaning that payment of dividends may not made without the Secretary of State’s consent. Consent to the payment of a Permitted Dividend will not be unreasonably withheld or delayed, subject to franchisees fulfilling their financial obligations under the ERMAs to the satisfaction of the Secretary of State and complying with their Companies Act obligations. For any franchisee year the Permitted Dividend will be limited to the value of the fees paid to the franchisee net of Corporation Tax.