No subsidy to the ROSCOs, TOCs or purchasing trains there. It's an estimate that given a requirement for different trains the ROSCO's leasing charges will be 250million over the length of an existing franchise.
Some franchises would absorb that, most - the ones which are subsidised - won't.
Again, whether you agree with this system or not - I don't - it's what we have and why we have so many new trains with no huge immediate bill.
Building HS2 is, again, different. It's immediate direct expenditure.
This is immediate direct expenditure. Indeed it being spent now.
That letter says that the provision of the new stock will cost an extra £250m in leasing costs over the life of the franchise. That is an extra £250m direct subsidy, being paid by government, and it is being spent now, today.
No franchise will swallow £250m. Even a franchise paying huge premiums wouldn’t. They would just pay the government £250m less. The effect is the same, the government has £250m less in its bank account.
Now you could argue that it’s worth it. But by the standard socio-economic appraisal methodology that government use, it isn’t. But HS2 is.
Of course you could argue that the standard appraisal methodology is wrong. The counter argument is that it is far better than what preceded it (which was to only consider financial implications, not socio economic factors), and that despite 20 years of refinement, backed by research by some extrao4dinarily intelligent people, no one has come up with anything better.