§ 10. Mr. Simon CoombsTo ask the Secretary of State for Transport if he will make a statement on the progress of his plans to franchise the Great Western line.
§ Mr. MacGregorGreat Western Intercity is one of the seven service groups that I have asked British Rail to prepare for early franchising. I have asked BR to create a separate Great Western operating company so that potential franchisees can see how the services perform before making their bids
§ Mr. CoombsMy right hon. Friend will be well aware that the InterCity 1"/ diesel locomotives have been in operation for 20 or more years and are coming naturally towards the end of their useful working life. Will he bear that fact in mind in assessing the length of the franchise that might be awarded in the Great Western region to ensure that there is a sufficient payback period for an operator to make the new capital investment which will be needed?
§ Mr. MacGregorYes, I am aware that in due course the diesel locomotives will have to be replaced. I make two points to my hon. Friend. First, the length of the franchise, which will be for the franchising director to establish, will reflect the commitment and investment that the potential franchisees are prepared to put in. In other words, if they are prepared to make a substantial investment in rolling stock, the franchisees will expect a longer franchise than 14 would otherwise be the case. Secondly, my hon. Friend the Minister for Public Transport will come forward shortly with the responses to the consultation document on leasing of rolling stock. That is also relevant.