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MORE rail franchises could be nationalised when emergency measures introduced after the outbreak of coronavirus expire on Sunday.
The government-controlled Operator of Last Resort (OLR) is reportedly on standby to take over more services if rail firms decide to hand back their contracts.
Emergency Measures Agreements (EMAs) lasting six months were introduced for all of Britain’s rail franchises in March to keep trains running despite the collapse in demand caused by the pandemic.
These involve the Department for Transport (DfT) taking on franchise holders’ revenue and cost risks, while paying them a fixed fee for operating trains.
This has cost taxpayers at least £3.5 billion.
Officials have been in intense negotiations with train companies over what should happen when the EMAs expire on Sunday.
The DfT is under pressure to reduce the amount that franchise holders are paid.
Labour’s shadow transport secretary Jim McMahon told the Commons on Thursday that £100 million has been paid out to shareholders as a result of EMAs, and “that cannot continue.”