On Fri, 06 Jan 2006 17:50:55 +0000, Paul Corfield
wrote:

Well it does not appear to be in the franchise agreements or else it
would be announced when they are awarded. I think it is fair to say
that government pays a very hefty slice of any rail franchise's costs.

Except those that pay a premium (eg Thameslink).

As the paymaster and the specifier of the service the government could
fix this overnight.

If the government was willing to pay. If it isn't, the TOCs can just
say "it's not in the contract, so if you want it, you pay for it".

The problem with the TOCs is that they live or die by their cost and
revenue base. They have no assets. Therefore anything that they perceive
will raise their costs or damage their revenue base they will not touch.
TfL has offered to deal with the cost element - up to a point -

Maybe the point is too low!

while
the TOCs seem unable to decide if products like Pre-Pay are an useful
addition to their product range. Similarly they seem uninterested in the
additional flexibility that Smartcard could bring them alongside the
usage info generated via the card validation process. They want 100%
guarantees that they can't lose out - that isn't possible in my view and
therefore they have obviously concluded they aren't prepared to take the
risk of adopting the technology.

But as you say, they have no assets, and no incentive to take risks. I
can see why TOCs could be concerned about getting themselves into a
situation where they are expected to pay to fit two new systems, when
their business models and franchise premia or subsidy profiles are
based on the existing systems only.

As I have said already the only person who loses is the customer.

I doubt whoever dreamed up the fragmentation of the railways even
considered them.
--
Arthur Figgis Surrey, UK