Shadow Strategic Rail Authority

Substantial benefit package to compensate passengers for late delivery of trains on LTS
_______________________________________________________________

date 22 December 1999
source Shadow Strategic Rail Authority
type Press release

A comprehensive package of benefits to LTS passengers worth several
million pounds has been negotiated by the Shadow Strategic Rail Authority,
as compensation for the failure to meet the November 1999 deadline on
delivery of 44 new trains.

SSRA Chief Executive Mike Grant said:

"The SSRA is currently leading an action team to address problems of late
delivery of rolling stock, the causes of which extend beyond the train
operating companies. In the meantime, we are pleased to announce
compensation for LTS passengers for the failure to bring in much needed new
trains on schedule.

" I am satisfied that the package we have secured from LTS adequately
compensates passengers for the delay in the introduction of their new trains.
Today's deal means that within three years, the line will now have completely
new rolling stock throughout - for the first time in its 150 year history."

Chief among the negotiated measures is a commitment by LTS to procure a
second tranche of 26 new four car trains, of at least the same standard as the
current new train order, to be delivered and in service by 30 June 2002,
replacing the remaining slam door stock. The existing order of new trains is to
be increased from 44 to 46, with a commitment for all of them to be in service
by the start of the summer 2000 timetable.

The package also requires the LTS to enter into discussions with the
Corporation of London to improve the pedestrian route between Tower Hill
underground station and the Coopers Row entrance to Fenchurch Street
station, and to make available £150,000 of funding towards that end.

A fourth element in the package is a commitment for a further £150,000 per
annum (index-linked) for the remaining life of the franchise to be spent on
additional staffing costs to extend booking office hours at various stations
across the LTS network (including the Tower Hill entrance at Fenchurch
Street).

Notes to editors

1. LTS had a commitment under their Franchise Plan to have 44 new four
vehicle trains in service by 1 November 1999. They have not delivered on this
commitment.

2. Where a breach of the franchise agreement involves a material adverse
effect on passengers, the Franchising Director's Objectives, Instructions and
Guidance from Government require him to ensure that the situation is
remedied, as well as seeking to secure additional benefits as compensation.
Where contractual remedies cannot be obtained or are inappropriate he may
take action under Section 55 of the Railways Act to propose an enforcement
order, specifying financial penalties where appropriate.

3. The LTS franchise was awarded to Prism Rail on 26 May 1996. It expires
on 29 May 2011 (15 years). It operates an intensive, mainly commuter,
service into London Fenchurch Street from south east Essex.

For media enquiries contact:

LTS Press Office. Les Powell. Telephone 0171 713 2154
Prism Rail. Richard Mountain. Telephone 0171 496 1447
For further details contact the Department for Transport Rail Press desk:
020 7944 3108

Railhub Archive ::: 1999-12-22 SRA-001