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<p>We are developing contingency plans for the replacement of the current franchise
with either a new short-term management contract with Northern or the Operator of
Last Resort (OLR). If we find the operator to be in default of its current contract
and that default was material and not capable of remedy, we have the right to terminate
the current franchise. If such a right is exercised, a decision on next steps will
be based on a full and rigorous analysis into what delivers the best outcomes for
passengers and taxpayers and what would best enable the implementation of the forthcoming
recommendations of the Williams Review.</p><p> </p><p>We will take a decision once
we have the full information, and will provide Parliament with a full update on these
next steps at the appropriate time.</p>
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