9 months ago
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Image source, Nathan Stirk
By Sam Gruet
Business reporter, BBC News
Avanti West Coast has apologised after a leaked internal presentation described government subsidies as "free money".
The management slides also described performance-related payments for staff as "too good to be true".
The train operator said the wording was "regrettable", adding the slides were not presented by senior management.
Avanti has faced criticism for its poor service, cancellations and delays over the past two years.
But following a series of short term contract extensions, the government awarded Avanti West Coast a new contract, saying its service had improved.
The leaked presentation follows calls in December for an urgent review of the company's operations after the rail firm announced it was slashing West Coast Mainline services throughout December.
Transport for the North said passengers were enduring a "deteriorating service" with 31.8% of all services cancelled or delayed over the last eight days.
The slides were first reported by the small, left-leaning news organisation, Novara Media, which said it had been told the presentation was given to the company's executive team, including the managing director.
Avanti West Coast said none of the slides had been presented by its managing director or any member of its senior management.
'Too good to be true'
One slide with the heading "Roll up, roll up, get your free money here!" describes how the government asks the rail firm to provide high-quality customer services, and then supports them in delivering new projects and initiatives.
Novara Media reports that the slide then reads: "Then they pay for it! …nearly all of it!"
During the pandemic, train operating companies went onto emergency contracts where the government paid a fixed amount for them to deliver services with the taxpayer bearing the financial risk, a system that is still in place.
Train operators can get paid more if they meet certain targets, "just like other government suppliers", according to the Rail Delivery Group (RDG), which speaks on behalf of the rail industry.
"That means it is taxpayers who bear the burden of a railway that is unsustainable," the RDG said in December.
Another slide details how the train company still secures performance-related bonuses, even if it scores seven, eight or nine out of ten for "compliance" - that is, sticking to the rules set out.
"And here's the fantastic thing! - if we achieve those figures, they pay us some more money - which is ours to keep - in the form of a performance-based fee!! Sounds too good to be true?! Well, on this occasion - it isn't - it's the absolute truth!" the slide goes on to say.
An Avanti West Coast spokesperson said: "These slides were an attempt to explain to some of our colleagues how the Service Quality Regime works, but the language used was regrettable.
"The Service Quality Regime is a robust and independent audit which we take very seriously. It has been demonstrated to hold us to account to drive up standards as we strive to continually improve our customer service."
Additional reporting by Katy Austin, transport correspondent
English (US)