Row over train operators’ finances threatens to hamper back to work plan
The government’s back to work campaign, due to launch this week, could be derailed amid a row brewing with train operators.
In March the coronavirus outbreak prompted ministers to take the UK’s trains under emergency measures for six months to protect them from any losses incurred by the 95 per cent slump in passenger numbers.
Whitehall officials are scrambling to finalise new contracts called Emergency Recovery Measures Agreements (Ermas), according to the Sunday Telegraph.
The government spent around £3.5bn between March and mid-June propping up operators’ finances but ministers are desperate to keep the taxpayers’ bill to a minimum.
The Department for Transport has reportedly earmarked four networks for less favourable terms so as not to have too big an impact on the Treasury. The Sunday Telegraph reported that South Western Railway, Transpennine Express, Greater Anglia and commuter line C2C will be offered wafer-thin profit margins.
Greater Anglia and C2C are said to be particularly aggrieved by the deal which is underpinned by a “flawed” mechanism, linking payments to operate the lines to London employment figures.
Trenitalia, the primary train operator in Italy and owner of C2C, is said to be particularly affronted by officials overlooking the fact its commuter line is the UK’s most punctual network.
Industry sources told the Sunday Telegraph the operator may follow through on a previously reported threat to withdraw from the country entirely. This could have serious repercussions for the HS2 project.
There also is growing anger at the government’s lack of clear guidance over public transport even as they push for a return to the office.
Last week transport secretary Grant Shapps frustrated the industry after he said a return to using public transport was “obviously not without its challenges”.
A spokesperson for DfT said the emergency agreements are “subject to confidential commercial discussions with train operators”.