HC Deb 13 January 1986 vol 89 c764
13. Mr. Spearing

asked the Secretary of State for Transport what approaches he has received from potential future purchasers of the London docklands light railway.

Mr. David Mitchell

I have received two approaches, including the one from the consortium which plans to develop Canary wharf, about which my right hon. Friend the Secretary of State made an announcement on 27 November.

Mr. Spearing

Is it not a fact that even if the western extension is built, about nine tenths of the route mileage of that railway will have been provided with public money? On what basis can there be private profit from public expenditure? Will the Minister reconsider the Secretary of State's decision not to require private operators to fit in with the system of travel cards and general traffic and fare levels which have been arranged by London Regional Transport?

Mr. Mitchell

The railway is not expected to make a profit. Therefore, the hon. Gentleman is wrong to assume that this is a case of public investment designed to create private profit. I am sorry to have to say that it will create a running loss.

Mr. Adley

Is there not cause for slight concern about the manner in which permission for the westward extension of this railway has been granted? Can my hon. Friend say whether I am right in assuming that the decision by the private operator to proceed was made only on the basis of his receiving planning permission at the other end of the line for a project which was originally rejected not only by the local authorities but by the Department of the Environment? Is this not a somewhat dangerous proposition?

Mr. Robert Hughes

Just say, "I do not know."

Mr. Mitchell

I was going to say that they are dependent one upon the other.