Franchise control policy 'illegal'

摘要

DfT Rail's policy on the change of control of franchises is illegal, according to a briefing note published by law firm White ft Case. The new policy was published on March 28 without prior consultation. Under the new policy, DfT Rail requires two kinds of payment as a condition of its consent to the change of control of a franchise or of a franchise operator. The most recent example was the acquisition of Laing Rail by Deutsche Bahn. In addition to a facilitation fee 'generally the greater of ￡1m or 5% of the value of the change of control of the franchise to the vendor', DfT Rail also charges an administration fee based on the amount of civil servants' time spent on considering the change of control. White Et Case notes that the facilitation fee is over and above the administration fee despite neither payment being provided for in the Railways Act 1993 or the standard franchise agreement.