I am writing to inform you that today we have simulateously extended government support to keep trains services running through the pandemic and ended rail franchising.
New ‘recovery’ agreements, called Emergency Recovery Measures Agreements (ERMAs), came into force yesterday. They will run for up to 18 months, ensuring the railways continue to support the country’s recovery from the pandemic.
They also contain provisions to terminate the current franchise contracts when they expire.
These new agreements keep the best elements of the private sector, including competition and innovation, that drive growth but go further by delivering greater leadership, direction and accountability. They are the first step in creating a new kind of railway. One which is customer-focused, easy to use, good value and where the trains run on time. This new structure will take shape over the coming months and will be the biggest change to the railways in a quarter of a century.
The new ‘recovery’ agreements place operators on far more demanding management agreements, with tougher performance targets, and lower fees than under the previous Emergency agreements of a maximum of 1.5% of the cost base of the franchise before the pandemic began. Complying with current public health guidance, I have also asked operators to run almost a full capacity service, to ensure there is space to help passengers travel safely while we continue to combat the threat of Coronavirus.
Linked to this, is Keith Williams’ comprehensive review of the railway. These measures have his full support, and will lead to a White Paper on the wider future of the railway during the new ‘recovery’ agreements period.
I am committed to delivering a railway that is entirely focused on the passenger. One that provides reliable, safe services on a network totally built around them.
Yours ever,
Rt Hon Grant Shapps MP
SECRETARY OF STATE FOR TRANSPORT