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RMT helpline 0800 376 3706 :: july/august 2022 :: RMTnews
10
Train operating companies are
only back in profit thanks to
transport secretary Grant
Shapps pandemic bailouts and
new rail contracts, according
to a new RMT report.
The report Bailing out the
TOCs, based on analysis of the
train operating companies’
accounts, reveals how the
government’s switch to
management-fee based
contracts that guarantee
profits of around £124 million
each year has restored profits
for the year of £600 million
across the industry for 2020-
21, with every owning group
improving its position during
the pandemic year.
The report also shows how
the TOCs, having lobbied for
these changes since before
the pandemic because of the
failures of franchising, are now
reassuring their investors that
they’re well placed to pay out
regular dividends from their
rail operations.
RMT general secretary Mick
Lynch said that the
government and the rail fat
cats were working together to
turn fares and taxes into
profits for shareholders at
public expense.
“I’m sure the fat cats will
find a nice way to thanks Grant
Shapps for his commitment to
their bank balances but
ordinary working people, rail
workers and the travelling and
tax-paying public are suffering
as the attack on our public
transport system is added to
the escalating cost of living
crisis,” he said.
Table 1: Payments of profit from the DfT to train operating companies under
emergency agreements
Total EMA fees payable
(2%)
£1,885,000
Chiltern
£4,242,000
ERMA fees over 18
months (1.5%)
£5,386,000
£13,104,000
Cross Country
£4,798,000
£10,794,000
East Midlands
£6,169,000
£13,881,000
East Anglia
£1,428,000
£3,213,000
Essex Thameside
£13,911,000
£32,445,000
Great Western
£7,973,000
£23,919,000
South Eastern
£10,033,000
£22,575,000
South Western
£17,831,000
£42,231,000
£2,876,000
£6,468,000
Thameslink, Southern and
Great Northern (GTR)
TransPennine Express
£11,313,000
£25,452,000
West Coast Partnership
£5,187,000
£12,285,000
West Midlands
£8,873,098
£19,964,469
Abellio ScotRail
£497,189
£1,177,554
£98,160,287
TOTAL
£231,751,023
Caledonian Sleeper
Table 2: Total rail group franchise profits and dividends, 2019-21
Group totals
Dividends
2019-20
2020-21
2019-20
Profit for the Year
2020-21
£46,014,000
£132,443,000
£40,000,000
£63,500,000
First Group
£39,680,000
Go-Ahead
£39,996,000
£30,000,000
£0
Abellio
-£493,073,000
£426,576,000
£1,000,000
£10,000,000
Arriva
£6,416,000
£0
£12,000,000
£0
Trenitalia
£0
-£114,739,000
£0
TOTAL
£599,015,000
£83,000,000
£73,500,000
-£515,702,000
TORY CONTRACTS BOOST
RAIL FAT CATS’ PROFITS
RMT research reveals government’s switch to
management-fee based contracts guarantee profits
of around £124 million each year