HC Deb 12 June 1989 vol 154 cc546-7
9. Mr. Snape

To ask the Secretary of State for Transport what recent discussions he has had with the chairman of British Rail about privatisation proposals for British Rail.

Mr. Channon

Privatisation is one of the topics that I discuss from time to time with Sir Robert Reid.

Mr. Snape

That was a terrific answer. Is the right hon. Gentleman aware that after years of running the railways on a Government-sponsored shoestring, to tell British Rail management that privatisation is the only answer to its problems is creating massive uncertainty within the industry? Is not talk of a return to the large regional railway companies simply nostalgic nonsense? Does not the United Kingdom, like other advanced industrialised nations, need a publicly owned, properly funded national railway system?

Mr. Channon

As I have told the House on many occasions, we have not decided about privatisation. I welcome British Rail's recent impressive performance, as do many hon. Members, and privatisation could reinforce that. However, I shall pursue that only if I am convinced that it will lead to an improved service to the customer. That is why I have given the hon. Gentleman this answer, I note his views about large regional companies.

Mr. Gregory

Does my right hon. Friend agree that there is a pent-up feeling that British Rail should be privatised for the benefit of both rail users and British Rail employees? Would not the employees welcome the opportunity of a share option scheme, something that has been consistently denied to them by the Opposition, and especially those working on the east coast main line? They will be delighted with today's announcement of 31 new coaches, which will mean even greater improvements. The sooner they have them, the better.

Should not the chairman of British Rail urgently consider the privatisation of certain sectors, including catering and the property board, both of which have been lacklustre?

Mr. Channon

My hon. Friend is right to say that there is a great deal of interest in and support for privatisation. There is no evidence from British Rail's performance to support the view that any uncertainty over that issue is causing any damage—

Mr. Snape

That is why I asked the question.

Mr. Channon

The hon. Gentleman did make that point.

We must decide on the long-term future of the railways without unnecessary delay. I note the views expressed by my hon. Friend the Member for York (Mr. Gregory) and will bear them in mind.

Mr. Dalyell

What does Sir Robert Reid say from time to time about the technical feasibility of privatisation?

Mr. Channon

Sir Robert Reid, not I, should speak for himself on these matters. British Rail is co-operating fully with the work in hand and the board has taken no formal position on privatisation.

Mr. Redwood

When considering privatisation, will my right hon. Friend take into account the need to make the railways more enterprising and more responsive to growth opportunities? I am thinking especially of the Earley power station site development in my constituency, where a nationalised industry appears to be reluctant to install a station that is much needed. Will my right hon. Friend ensure that the ability to go for growth and for new passengers is written into the privatisation proposals?

Mr. Channon

I shall study what my hon. Friend has said. Most hon. Members, certainly Conservative Members, know that privatisation in a large number of areas has released the initiative and enterprise of many state industries, has provided growth opportunities and is heartily to be desired.