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Last week Chris Grayling allowed Virgin Stagecoach to end their franchise early and walk away from commitments to pay £2bn in the last few years of the contract.
This is the East Coast railway that was re-nationalised and in Public hands returned over £1bn to the treasury but was then re-privatised because of ideology.
The contract that was offered to STagecoach allowed them to have lower payments initially before they ramped up in the later years of the contract.
So more magic money tree money!
"Stagecoach would only forfeit a £232m bond, and pay relatively small premiums until 2019, rather than pay the bulk of the £3.3bn promised over the course of the eight-year franchise. The operator paid £204m in its first full year, but the annual amount was due to rise rapidly from £353m in 2020 to £645.4m in the final year."
This is the East Coast railway that was re-nationalised and in Public hands returned over £1bn to the treasury but was then re-privatised because of ideology.
The contract that was offered to STagecoach allowed them to have lower payments initially before they ramped up in the later years of the contract.
So more magic money tree money!
"Stagecoach would only forfeit a £232m bond, and pay relatively small premiums until 2019, rather than pay the bulk of the £3.3bn promised over the course of the eight-year franchise. The operator paid £204m in its first full year, but the annual amount was due to rise rapidly from £353m in 2020 to £645.4m in the final year."
