Vol. 554 No. 5
1258 Mr. Naughten asked the Minister for Transport the financial penalties which can be imposed if the company awarded the contract to run Luas does not operate the service satisfactorily; and if he will make a statement on the matter. [16675/02]
The terms and conditions of the contract for the operation of the first light rail lines were negotiated and concluded by the Railway Procurement Agency (RPA) with CGEA Connex. The contract was formally signed in May 2002.
The final details of the contract represent a commercial transaction between the two companies and therefore are part of the day-to-day responsibilities of the RPA. However, the contract provides for the payment of a fee to Connex in return for operating a specified level of service at pre-determined standards. Incentive bonuses will be payable in respect of issues such as increased patronage and deductions will be made if performance standards are not met. In the event of continuous underperformance, the contract allows the RPA to terminate the contract.
