I read in the FT today that Avanti will probably be getting paid under the new contract despite the shambles they have allowed to unfold on the UK’s most important mainline.
I was a contracts lawyer for years (nobody throw anything at me please, was just my job) and have drafted a lot of public private concession contracts on behalf of the public sector I have not drafted anything in the rail sector.
I am really confused. My understanding was that one of the reasons we are moving from franchises to concessions is to try and remove risk premiums that franchise bidders might add to their bid to cover risks they can’t actually manage, such as fall in revenue due to global pandemics! However, I would have thought it would be really important to ensure that risks they are very much able to manage are the concession holders risk. Staffing would seem to be the most basic of these bearing in mind they are provided with the tracks, the trains, the ticketing system etc etc. In fact, surely rostering, staff, customer service and their in-house ticketing -and buying and managing consumables is pretty much all they have to do?
If that is right, what is going on here? Has the DfT put together a rubbish contract or have they instructed the TOC to carry staffing ratios that, as we are hearing from former Virgin people, were not the case under Virgin and have wisely been avoided by other TOCs.
It is one or the other isn’t it? This is either a very bad contract which does not penalise the TOC for getting it wrong, and is coming back to bite almost ups signing, or it is a DfT cock up in forcing a poor staffing ratio that beat practice from other TOCs already shows is not going to work.