HC Deb 09 July 1990 vol 176 cc10-1
11. Mr. Waller

To ask the Secretary of State for Transport what has been the total investment in the electrification of the Leeds-London inter-city service.

Mr. Freeman

British Rail puts the total expenditure on electrification of the Leeds-London inter-city service at £164.4 million at 1989–90 prices.

Mr. Waller

Is my hon. Friend aware of the great success of electrification in improving customer service? Will he give sympathetic consideration this October to the application by the West Yorkshire passenger transport executive to invest its own resources in electrifying the Leeds-Bradford railway, as well as the Airedale and Wharfedale lines, especially as the investment will produce a positive return above the 8 per cent. criterion required for such schemes?

Mr. Freeman

I am aware that my hon. Friend is a strong supporter of that proposal, along with several other hon. Members on both sides of the House. I intend to visit the West Yorkshire passenger transport executive and authority in September. We shall give the matter careful consideration. I am glad to note that today British Rail has added an option clause to its agreement for the purchase of rolling stock for the Birmingham cross-city service. That will safeguard about 14 trains by under-option for possible use on the extra electrified line.

Mr. Madden

As the Minister's predecessor, in a meeting earlier this year, gave every impression of being extremely sympathetic to electrification of the Bradford-Leeds line, and as there are no doubts about its economic viability, will the Minister pull his finger out and approve the loan to the West Yorkshire passenger transport authority so that it can get on with the work? All sections of the community in Bradford have been pressing for the work to be done for the past six years.

Mr. Freeman

The hon. Gentleman's language is colourful, but I understand the strength of his feeling. He will recall that my predecessor said that a decision would be made once the autumn statement settlement had been announced. I also give him that assurance. I am well aware that the West Yorkshire PTE is seeking only credit approval, not section 56 grant. The scheme appears to be viable, so I give the hon. Gentleman and other hon. Members the assurance that the proposal will be considered at the appropriate time when we have the new public expenditure survey settlement.

Mr. Devlin

As my hon. Friend was criticised earlier by my hon. Friend the Member for Birmingham, Selly Oak (Mr. Beaumont-Dark) for investing too much in the A1, a much-needed transport link for the north and north-east, instead of investing in the railways, does my hon. Friend agree that the electrification of the east coast main line and the electrification scheme for the Leeds-Bradford line are two of 10 major schemes which amount to the largest-ever investment in British Rail?

Mr. Freeman

I am grateful to my hon. Friend for reminding the House that over the next three years British Rail investment will be 75 per cent. up in real terms on that for the past three years. London Regional Transport investment will be about double in real terms. There is a substantial increase in investment which is significantly financed by the public sector through grants and borrowings.

Mr. Snape

Will the Minister explain slowly, for the benefit of his more stupid and innumerate Back Benchers, that the £164 million for the electrification of the London-Leeds railway line is paid for almost exclusively by farepayers in almost the highest rail fares in Europe, while the £600 million for the upgrading of the A1 trunk road is paid for exclusively by taxpayers? As a colourful accountant, can the Minister explain that discrepancy in the Government's transport policy?

Mr. Freeman

Perhaps I can give the hon. Gentleman the figures. The £3.7 billion investment in British Rail over the next three years is financed in four ways: £0.2 billion comes from its cash flow, before depreciation; £1.6 billion comes from grants, not only from central Government, but from passenger transport executives—

Mr. Snape

You bet.

Mr. Freeman

The hon. Gentleman says, "You bet", but only about £200 million of that £1.6 billion comes from local authorities. One billion pounds comes from loans and £0.9 billion comes from the sale of assets which belong to the taxpayer. I repeat that the vast majority of British Rail investment, which is the largest for 25 years and represents a 75 per cent. increase in real terms, comes from the public sector.