Figures buried by Network Rail, and brought to light by Parliamentary questioning, reveal the scale of compensation paid from Network Rail to Southern Rail and its successor Govia Thameslink Railway (GTR). Under the franchise this money is transferred to the Department for Transport (DfT).
Southern became a part of GTR in August 2015 and, under the terms of the GTR franchise agreement, revenues collected from fares and Network Rail compensation payments are transferred to the DfT in return for a management fee.
Schedule 8 compensation payments for planned disruption, in large part due to the upgrade works at London Bridge, totalled £6.3m to Southern and £22.4m to GTR in 2015-2016.
Schedule 4 payments for unplanned disruption, caused by issues such as signal failures, came to £4.1m to Southern and £27.4m to GTR in 2015-2016.
In summary the DfT received £49.8m in compensation payments via GTR from Network Rail in 2015-2016.
Crispin Blunt said:
"The case for compensation and service improvement after all the delays and cancellations suffered by the travelling public on the Southern Rail network, particularly since the beginning of 2015, is unanswerable. Reduced and simplified fares which would be achieved by the extension of Zone 6 to Gatwick, including intermediate stations.
"Whilst I am challenging and examining GTR's figures that a Zone 6 extension to Gatwick would cost around £4M per annum, for example, the local rail user’s association estimates the measure as cost neutral, £4M set against the £50M scale of compensation transferred to the Department for Transport in 2015-2016 in the first year of the Govia Thameslink Railway contract, shows how the introduction of zonal fares is eminently affordable and proportionate. This is now under consideration in government and I will go on making the case until we get the fare structure and service improvement commuters are owed. Commuters in Redhill and Reigate will disproportionately benefit from this change, as the current fare structure is unfairly unbalanced. It's the least they deserve."
Notes for editors:
Contact 02072192254
Parliamentary Question tabled by Crispin Blunt:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2017-03-30/70120/
On the Network Rail site, following the link in the PQ, scroll down to “P” and expand the menu.
Under that menu, there is a link for payments for disruption on the railway made under schedule 8 and schedule 4.
Office of Crispin Blunt MP: 0207 219 2254