§ 10. Mr. Llew SmithTo ask the Secretary of State for Transport what plans he has for ensuring efficient strategies for managing Britain's rail network. [34692]
§ Mr. WattsThe Government's strategy is based on the successful privatisation of the railways, especially Rai ltrack.
§ Mr. SmithWill the Minister confirm that £500 million was spent on lawyers and consultants during the privatisation process? The result is a fragmented network in which profits come before passengers and shareholders before safety. How is that in the interests of efficiency?
§ Mr. WattsOn the contrary, there is no fragmentation of the network. It was decided as a deliberate matter of policy to keep the ownership and the management of the rail network in one set of hands—Railtrack's.
§ Mr. WatersonWhen talking about efficient strategies for the rail system, will my hon. Friend describe the effect of rail privatisation on the level of public subsidy to passenger rail services?
§ Mr. WattsThe evidence of the first eight franchises to be let shows that, by the seventh year—which is the end of the normal franchise term—the subsidy paid to private operators will be less than one third of the grant paid to British Rail in the past year.