Renewed attack on rolling stock leasing companies

Brief article from The Independent suggesting that the Department for Transport is seeking reductions of 10 per cent in the charges made by HSBC, Royal Bank of Scotland and Abbey National for leasing mainline railway rolling stock. Previous efforts by the ORR and the SRA in this area have not been crowned with major successes and there is little in the article to suggest that the Government has worked out a way of finding "other financial institutions" that are able to put competitive pressure on charges below the prevailing level, or a valid argument to challenge the charges made by the incumbents.

The OFT has recently closed its consultation on releasing Porterbrook, now Abbey National's rail leasing arm, from the competition undertakings it gave when it was purchased by Stagecoach in 1996.

For further information or advice please contact Franck Latrémolière.

Filed under DfT, Public transport.

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