The balance for the Investment fund now stands at £177,636. Additionally as per Franchise Agreement, if the fund is not spent each financial year and the remaining funds are carried over, January RPI will be applied to the remaining balance. With that a sum of £4065 should be added therefore the fund now stands at £181,701.
Serco are currently considering proposals for options where to re-invest the fund in a similar method to the ScotRail SQUIRE investment fund.
Year 3 review
The SQUIRE regime had previously included both the ScotRail stations and Sleeper trains performance combined. After the Year 3 review it was agreed to remove any exposure of ScotRail elements from the Caledonian Sleeper SQUIRE regime.
The regime went live on April 1 2018/19 as the trigger point of a negative value had been met and in conjunction with the roll out of the revised methodology.
The SQUIRE regime is an integral part of the ScotRail and Caledonian Sleeper Franchise Agreements and entails Transport Scotland Inspectors conducting audits on services and facilities at stations and on trains throughout Scotland. Its purpose is to drive and secure improvements in the quality of service provided by both franchisees and is one of the toughest performance monitoring regimes in the UK.
The financial penalties/payments for SQUIRE within the Caledonian Sleeper Franchise would only become live if a trigger point was met.
These trigger points include aspects such as the following:
- results from Mystery Shopper targets falling below the minimum level
- the NRPS results producing an improvement plan in respect of KPIs
- franchisee becoming entitled to Profit Support Adjustment
- the franchisee exercising its Rebasing option
- from year 2 any negative value would result in the franchisee making a payment.