Train operator management fees could be used as additional financial support for Northern communities, says Transport for the North’s Rail North Committee.
Meeting virtually last week, the North’s civic leaders recommended a review of Emergency Recovery Management Agreements (ERMAs) in place with the region’s train operating companies.
They suggested that any profit from the management fee, paid to operators as part of temporary measures in place until April 2021, should be temporarily diverted to help economic recovery in communities affected by COVID-19 restrictions.
Transport for the North has now written to the Secretary of State for Transport to explore the prospect.
The move was proposed by Chair of the Committee Councillor Liam Robinson, representing the Liverpool City Region, against a backdrop of many businesses in the North suffering hardship or facing closure.
He said:
“Within the ERMAs there is a 1.5 per cent management fee. To be clear, I have no issue with the public purse stepping in to cover the cost of operations and the associated revenue risks. That is not a problem whatsoever.
“But let’s be blunt, that 1.5 per cent is effectively a profit margin, albeit a modest one. At this moment in time, it is unacceptable for any organisation to be making a profit from the taxpayer at a time of global emergency.”
The Rail North Committee agreed to Cllr Robinson’s proposal to “write to the Secretary of State on this matter to say that we believe, for any of the train operations that operate within the Transport for the North area, that those ERMAs should be reviewed, removing that management fee, so that money can be put to better use for those people that need it.”
Following a reduction in passenger numbers, the emergency measures were brought in earlier this year to keep trains running, with the number of services being gradually increased since.
It was agreed that, should the Department for Transport not be keen to review the arrangements, Northern leaders and Transport for the North should pursue operating groups to seek additional to support for the people of the North.