LONDON, June 18 (Reuters) - Britain has so far approved
spending of 3.5 billion pounds ($4.38 billion) to keep its
railways running during the coronavirus pandemic, the government
said on Thursday.
Under emergency measures brought in on March 23 for six
months, the government has been providing financial support to
rail companies to keep trains running for key workers despite
overall passenger numbers plunging by as much as 96%.
The government has approved 3.5 billion pounds of spending
to ensure rail services continue to operate and it was not yet
possible to provide an estimate of the total cost incurred to
date, junior transport minister Chris Heaton-Harris said in a
written parliamentary answer.
The final bill could rise as industry sources say rail
companies are asking for government help to stretch beyond the
initial six months as passenger numbers are unlikely to return
to previous levels for some time.
Britain's railways, which were privatised in the 1990s, are
currently running with passenger numbers down by 80% to 90% from
normal levels. As long as the country's two metre social
distancing rule remains in place, they can only carry about 15%
of their usual capacity.
Britain is reviewing its two-metre social distancing rule
ahead of the next stage of lockdown easing planned for July 4,
and should it be reduced to one metre, trains could run at about
45% full according to industry estimates.
Under the emergency measures, the government took on all the
cost and revenue risk itself, and instead paid companies
including FirstGroup, Arriva UK Trains and Govia, partly
owned by Go-Ahead a small fee to keep operating
services.
The previous model of rail contracts, where operators need
to grow passenger numbers to meet their financial commitments,
was already under pressure before the pandemic, and will face
further challenges under social distancing.
($1 = 0.7985 pounds)
(Reporting by Sarah Young; Editing by Toby Chopra)
