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  "documentTitle": "Rail industry cost and revenue sharing (2011)",
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  "notes": "The slide critiques the PR08 EBS mechanism as ineffective due to its national scope, which weakens the link between operator actions and financial results.",
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      "text": "For a cost and revenue sharing mechanism to be effective there needs to be a sufficiently direct link between the actions of each train operator and the resulting financial outcomes for that operator.",
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      "text": "ORR/ATOC/Network Rail. Rail industry cost and revenue sharing.",
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      "text": "More specifically, the following features need to be in place for a cost and revenue sharing mechanism to be effective:\n- there needs to be detailed and reliable financial information available for each NR geography\n- someone in NR needs to be responsible for that geography and have sufficient delegated authority to implement any changes agreed with the train operators\n- there needs to be at least one train operator with a sufficiently high share of the geography that they perceive the link between their actions and outcomes to be sufficiently direct",
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      "text": "Regarding the last of these points, it is difficult to be precise as to the necessary “market share”. There were mixed views at the stakeholder workshops and some stakeholders thought it should be very high",
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      "text": "This is clearly not the case for the PR08 EBS mechanism because it is a national scheme. As such, the link between each operator's actions and the financial outcomes is very weak (even if the DfT had agreed to suspend Clause 18.1 and similar provisions)",
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      "text": "2 – Geography: The geographical structure used for the cost and revenue sharing mechanism must give TOCs confidence that there will be a strong link between their actions and the financial outcomes",
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