HC Deb 21 May 1984 vol 60 cc665-6
4. Dr. Marek

asked the Secretary of State for Transport if he is satisfied with present progress on railway electrification.

The Parliamentary Under-Secretary of State for Transport (Mr. David Mitchell)

I am glad to report the progress British Rail has made. It has electrified 245 track miles since May 1979. A further 430 track miles are now being electrified or have been approved.

Dr. Marek

Does the Minister accept that the profitability objective that he has set is now unlikely to be reached within the arbitrary time scale that he laid down? In the light of that, will he set that condition aside and consider the electrification of the east coast main line on its merits, which are, that it would make an independent contribution to British Rail inter-city services and an undisputed 11 per cent. return on investment?

Mr. Mitchell

The financial objectives of British Rail, for which the Secretary of State asked, are simply those which British Rail proposed for 1988 brought forward to 1986. We have already said that we would give east coast main line electrification urgent consideration when we received the inter-city strategy, which we expect to receive shortly.

Mr. Adley

Will my hon. Friend make a clear statement that it is the Government's policy to provide the most efficient and effective railway system as an essential component of a modern, industrial country? Will he therefore consider transport policy like defence policy, and, if good defence or transport are needed, provide the best possible and most modern facilities?

Mr. Mitchell

British Rail is already determined to provide the sort of service to which my hon. Friend referred. It has planned a major increase in investment for the next few years, and my hon. Friend will be pleased with the progress that is being made.

Mr. Leadbitter

The Minister said that he expected the electrification of the east coast line shortly. What does he mean by "shortly"? Has he a time scale for its implementation?

Mr. Mitchell

I did not say that I expected east coast main line electrification shortly, but that I expected the inter-city strategy shortly. When I have received that, we shall be able to take a decision on both east coast main line electrification and its timing.

Mr. Raffan

Will my hon. Friend reconsider pressing British Rail to help finance a study into north Wales electrification in view of the electrification of the Norwich line and the line between Hastings and Tonbridge, both of which will produce a similar rate of return to north Wales electrification, but far fewer potential customers?

Mr. Mitchell

It is for the management of British Rail to propose electrification where it believes that that is the right thing to do. I have received no such application.

Mr. Anderson

Is the Minister aware that the 11 per cent. discounted rate of return on the east coast main line investment is 4 per cent. higher than on the investment for comparable road building and 2 per cent. higher than on comparable rail investment in France? If we show by our actions that we have no confidence in our manufacturers in this area, how can we convince foreign buyers to buy British electrified equipment?

Mr. Mitchell

The hon. Gentleman is presupposing a result from our examination of proposals for east coast main line electrification. We have not yet carried out that examination.