Defaulters should not be ostracised

摘要

That DfT should 'tolerate the idea that a franchise could default' is a key message of the Brown review. This contrasts with ministers' rhetoric when National Express Group handed back the Intercity East Coast franchise.Brown argues that it 'is neither sensible nor realistic to design franchise structures that seek to eliminate completely the risk of default'. Bidders will respond by pricing the risk into their offers.