HC Deb 05 November 1980 vol 991 cc1278-9
Mr. Whitehead

asked the Minister of Transport if he is now able to make a further statement about the Channel tunnel project.

Mr. Kenneth Clarke

The British and French railways' project and a number of other schemes are still being developed. We hope to receive substantive proposals, including financing details, by the end of the year.

Mr. Whitehead

I realise that the Minister cannot anticipate that matter. However, will he confirm that the scheme under active consideration is the single track British Rail-SNCF scheme, not the ludicrous Brunnel which various powerful private interests are putting forward, which will be many times more expensive?

Mr. Clarke

The British Rail-SNCF scheme is only one of several being investigated. We have invited people to come forward with propositions. There are several active consortia in this area. We are waiting for all of them to work out their proposals and to come to us with them, together with suggestions for their financing.

Mr. John Wells

Will my hon. and learned Friend assure the House that any political risk that arises from the construction of the tunnel will be underwritten by the Government? Whereas commercial interests are well capable of underwriting commercial risk, there is always the political uncertainty. May we have an assurance on that point?

Mr. Clarke

I could not put the distinction more clearly than has my hon. Friend. That is precisely the position. If the Government, for political reasons, midway through the scheme were to cancel it, there would be some obligation on them to make good the financial loss; but in our opinion the commercial risk should be taken by those financing the project. There is no way in which the Government will put risk capital into any project of any kind.