Read an article about new shape of a future franchise said that not for profit organisations could run services this is a worrying thing as who exactly are these organisations ? This seems typical of Edinboroughs muddled thinking on many topics surely only properly qualified operators could run trains.
Not for profit organisations could be run by anyone (Branson has even offered it in the past). One problem is that they don't make any profit, so companies aren't that keen to do so. Another problem is that companies that do run them can just set whatever costs they like to the not for profit.
As an example I could run a bit for profit, yet I'm still entitled to be paid for my services. As such I could still take a salary of £250,000 a year, which although may not be as tax efficient as being paid dividends could still see me have the same cash in the bank. The company hasn't made any profit, yet I'm still taking a nice amount of money out of the business.
Alternatively I could employ "Ham's catering LLP" to provide the onboard catering for Ham's Rail which is the first not for profit rail franchise who had promised to reinvest any profit they make into providing new services and improving the existing rolling stock. Unfortunately for the non profit business the catering company seem to be charging a lot for there services, so much so that there's no profit to reinvest into the non profit so sorry no new services or improvements to rolling stock. On the plus side, owning 75% of Ham's catering LLP (10% is owned by my wife and the last 5% by my children) means that I get a rather nice divided payout each year and my children's savings go up quite nicely (probably enough that they won't need a mortgage to buy their first house by the end of the franchise, not that they need it but they could rent it out for a few years until they do).
Due to being a private company Ham Rail can tender to whoever they like and to ensure that they don't fall foul of any rules about contracts being over a certain value they split down the catering jobs to individual groups of services (i.e. the big town stoppers are one contact are one whilst the semi fasts are another). However in doing so the bigger companies aren't able to offer the benefits of economics of scale and so aren't interested or charge a lot for each.
Ham Catering don't really want to provide the catering and so just contact it out to someone else in one big contact (getting the economy of scale from the big boys) and cream off the difference.
Yes there will be some bad press if it comes to light, but that's fine as I'll be in one of my many homes somewhere with nice weather and I'll issue an apology and promise to give some money (which will appear to be a large amount but in reality is nothing compared to what I've earned from the franchise, maybe that £250,000 that I was paid as a salary from the franchise for the first year, but still leaving me with 6 years of salary plus the profits from the catering company) to the charity of choice if the masses at that time. Most people will forget about and I'll be free to move into my next rail franchise.
If I were being really devious there'd be another few layers so that it was harder to find out exactly how much money I'd actually received.