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Chiltern Railways faces £500,000 fine for breach of franchise terms

 

 
 
 

Chiltern Railways faces £500,000 fine for breach of franchise terms

     
 

Chiltern Railways faces a £500,000 fine from the Government over breaches of its franchise agreement.

The penalty for the company concerns the late delivery of two station improvement schemes and two breaches of requirements in relation to timetable changes.

In a letter to Chiltern, the Department for Transport said that although the franchise contraventions had been remedied, Transport Secretary Philip Hammond had concluded that a financial penalty was “appropriate”.

Chiltern has until May 5 to comment and it is intended the penalty will come into effect in June. 

Chiltern Railways chairman Adrian Shooter said: “It would be a cause for enormous regret if £500,000 were diverted from investment in improvement for passengers as a result of low-impact franchise breaches.”

He went on: “We accept that, in 2009, there were four technical breaches of the franchise agreement, none of which had significant consequence for our passengers or incurred cost to the taxpayer.

“The most serious breaches were a 16-week delay in commissioning new lifts at a single station, and a four-week delay in installing a new shelter on a platform that already had one.”

He went on: “Since that time, we have successfully delivered £7.25 million of investment in station improvements and car park expansions, started work on the largest privately-funded passenger infrastructure project since before World War Two and continued to meet all the requirements of our franchise on punctuality and service quality.

“Next month, we will be introducing brand new commuter trains at a cost of £1.2 million per carriage.”

Rail Minister Theresa Villiers said: “This Government is on the side of rail passengers. I am pleased that Chiltern’s contraventions have all now been remedied. However, we could not let these breaches pass without further action.”



Read More http://www.birminghampost.net/news/west-midlands-transport-news/2011/04/07/chiltern-railways-faces-500-000-fine-for-breach-of-franchise-terms-65233-28479513/#ixzz1IrTsnLbI
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