Saturday 16 October 2021


< back | business | images | knowledge | library | rail unveiled | home


::: RMT threatens national industrial action over service cuts

Railhub Archive
2011-06-11 DfT-001
Department for Transport


Chiltern Railway – penalty under S57A of the Railways Act 1993 (as amended)

keywords: click to search

Department for Transport

Phrases in [single square brackets] are hyperlinks in the original document

Phrases in [[double square brackets]] are editorial additions or corrections

Phrases in [[[triple square brackets]]] indicate embedded images or graphics in the original document. (These are not usually archived unless they contain significant additional information.)

Department for Transport

Chiltern Railway – penalty under S57A of the Railways Act 1993 (as amended)

11 June 2011
source Department for Transport
type Written statement

summary An explanation of why a penalty was levied on Chiltern Railways

Parliamentary Under-Secretary of State for Transport (Norman Baker): I have decided to impose a penalty on Chiltern Railway of £350,000, having taken account of the outcome of a statutory consultation process.

The penalty relates to four breaches of the terms of the company’s franchise agreement which occurred before management of Chiltern transferred to Arriva UK Trains in early 2011. These involved late delivery of two station improvements, and two timetable changes which were not properly authorised by the Department for Transport and which could, if unrectified, have significantly reduced the value of the franchise to the Department. These breaches were in the context of the company’s poor performance in meeting a number of its detailed contractual obligations over a substantial period.

The Department imposes such penalties very rarely. When it does so, the aim is to encourage train operators to comply with their contractual obligations to the Department under franchise agreements. It should be emphasised that the penalty does not relate to Chiltern’s operational performance. As a number of consultees commented, the company is noted for its high standard of performance and customer satisfaction, and for the substantial investment it is making in improving services.

The penalty has been reduced from the proposed level of £500,000 in the light of the responses to the consultation, and in particular the welcome and clear assurances from Chiltern that it has stepped up its commitment and oversight at senior management level to ensure compliance with the terms of its franchise.

The receipts from the penalty will be retained by the Department and reinvested in transport. No decision has been made at this stage as to the final use of the funds.

Railhub Archive ::: 2011-06-11 DfT-001


Not logged on