Rail Regulator emphasises importance of compliance and control arrangements in the railway industry
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14 March 1997 John Swift QC, the Rail Regulator, has written to all passenger train operators requesting them to review their internal arrangements for ensuring compliance with their licence obligations. He took this action as a result of conclusions he reached about ticketing irregularities which occurred at LTS Rail last year. His conclusions cover a number of wider lessons for the industry. In his letter (copy attached) he stresses the importance of management taking positive action to comply with the requirements of commercial contracts which underlie the licence obligations. He emphasises that he, as well as each train operator's trading partners, will want to continue to be satisfied that the arrangements are robust and effective. Notes to Editors :The Regulator has circulated with his letter his conclusions arising from the investigation into ticketing irregularities at LTS Rail last year. The Regulator concluded that there was a breach of condition 7 of LTS Rail's passenger licence which deals with through tickets and network benefits. LTS Rail has offered an undertaking detailing the action it would take to avoid the risk of a similar breach. This has been agreed by the new owner of the company, Prism Rail plc. In the light of the undertaking and of independent reports about its implementation, the Regulator has served a notice under Section 55(6) of the Railways Act 1993, confirming that he is satisfied that appropriate remedial action has been identified and is being taken. Copyright © 2002 Office of the Rail Regulator |
