HC Deb 25 March 1981 vol 1 cc910-1
5. Mr. Anderson

asked the Secretary of State for Transport when he expects to give his response to the findings of the rail electrification review.

Mr. Fowler

I hope to be able to make a statement on railway electrification in the next month or two, after I have completed my consideration of the findings of the review and the British Railways Board's corporate plan.

Mr. Anderson

Is the Secretary of State aware of the clear acceptance in the joint review of the advantages of main line electrification and the growing consensus and bipartisan view agreed by the TUC and the CBI, of the beneficial effects of rail electrification on industrial production for home and export markets? Will the right hon. Gentleman take on board the fact that we expect a positive response from the Government on this important piece of public investment?

Mr. Fowler

Of course I take that on board. We have had the report only since Christmas and we are talking, on the largest option, of expenditure of between £750 million and £775 million. We are justified in taking some weeks to consider the matter, but I take on board what the hon. Gentleman has said.

Mr. Dorrell

Has my right hon. Friend seen the statement of policy published by the British Railways Board this afternoon? Does he welcome it as a major contribution to the development of rail policy during the 1980s, and does he recognise the important part that electrification will play in achieving the targets set out by the board in that statement?

Mr. Fowler

I have only just seen that document. It is being published by British Rail at 2.45 pm. The timing may not be altogether coincidental. Obviously, I shall need some time to study it. I commend to the House the accompanying statement by Sir Peter Parker. It is right to emphasise that the future of the railways can be a good one, but it must be a future that is earned by the railways. It is not something that the Government can provide.

Mr. Bradley

Is the right hon. Gentleman aware that it will be impossible to embark on the electrification of some of the lines recommended in the report until some of the major, costly and time-consuming resignalling schemes have been completed? What consideration is he giving to that investment aspect of the problem?

Mr. Fowler

That is why we are dealing with the consideration altogether and not seeking to treat electrification as a separate issue. We are dealing with the investment needs of British Rail over the next four or five years.

Mr. Waller

Bearing in mind the excellent rate of return provided by rail electrification, will my right hon. Friend give careful consideration to Sir Peter Parker's call in the document published today for an easing of the annual self-financing limit of BR, by the injection of private capital in the way that Sir Peter requires?

Mr. Fowler

We are concerned to develop any opportunities for genuine private investment in the railway system. I am sure that the Opposition will wish to endorse that.

Mr. Stott

Does the Secretary of State recall that when he last answered questions in the House I drew his attention to the unanimous conclusion of the working party that an early decision on electrification was essential if British industry was to benefit from it? We hope that the right hon. Gentleman's decision will be made within a month rather than a "month or two". Can he indicate whether he has consulted his right hon. Friends the Secretaries of State for Employment and for Industry to ascertain from them how many jobs would be created in the regions and how many companies throughout the country would benefit from an early decision on electrification if the Government went for the biggest option?

Mr. Fowler

We hope to make the decision in the next two months. I have made that clear. We estimate that about 2,000 new jobs would be created in the railway manufacturing industry if the electrification project went ahead. That impact and the effect on the private sector railway industry are matters that we shall have closely in mind.