Government pushed for answers on Southern rail contract

24 January 2017

The Transport Committee has published correspondence with the Department for Transport's (DfT) Rail Minister, Paul Maynard MP.

The Committee's October 2016 report, Improving the rail passenger experience, revealed that Govia Thameslink Railway (GTR), which runs Southern, Thameslink and Great Northern services, had breached contractual performance obligations, as a result of a range of planning, management, infrastructure and industrial relations problems.

Amid growing calls for the contract to be taken from GTR, the company made claims for force majeure (i.e. that the contractual breaches were due to events beyond its control) in relation to industrial action that has been affecting Southern services since April 2015.

The Committee's view was that the DfT should be considering all options to improve the situation for passengers, including termination or restructuring of the contract. Given that such options are not possible until the force majeure claims have been processed, the Committee has continued to push the Department to come to its conclusion as a matter of urgency.

Paul Maynard's latest letter reveals that the DfT has assessed GTR's first three claims, but GTR has been given the opportunity to challenge the assessment. The Department will not publish its assessment until GTR's challenge has been considered—no timeline is given for this.

Chair's comments

Louise Ellman MP, Chair of the Transport Committee, said:

"GTR's claims for force majeure were made ten months ago. While the Transport Committee appreciates the complexity of the situation, the Department must state publicly whether the company is in default of its contractual obligations.
The Department for Transport has a duty to act decisively in the best interests of passengers and taxpayers. At the last forecast, the Department had already incurred losses of £38 million in revenue—a figure likely to rise. Ministers cannot duck this issue. The Committee will continue to push for openness and clarity."

Further information

Image: PA