§ 21. Mr. FauldsTo ask the Secretary of State for Transport what is his assessment of the success of the rail sell-off; and if he will make a statement. [30622]
§ Sir George YoungThe team had a good result.
§ Mr. WinnickHe was held up on the journey.
§ Mr. FauldsWell, for once, my hon. Friend the Member for Walsall, North (Mr. Winnick) is absolutely right—I am delighted that I am here in time because I was held up. Is the Secretary of State aware that I was held up by British Rail in getting here this afternoon? Is he aware that I waited at Euston station last Thursday to return home to Stratford-upon-Avon by way of Coventry and that there was a 55-minute delay—yet another of the Euston break-ups because of the points system outside Euston? How can he possibly claim that any price paid for those decaying services can be worth it for the suffering of the British people?
§ Sir George YoungWith respect, I think that the hon. Gentleman has missed the main point. The key question is: which regime will provide the resources that are necessary to improve the quality of service and the reliability of the trains on which he travels? It is our very strong contention that the regime that we have introduced will ensure that in a few years the hon. Gentleman will not be detained in the way that he was today.
§ Mr. Jacques ArnoldIs my right hon. Friend aware that my constituents are very encouraged by the rail sell-off and rail franchising? We are looking forward to seeing SouthEastern trains moving rapidly into the private sector, particularly in view of my right hon. Friend's requirement that the provision of new carriages on the Kent coast line through the stations of Meopham and Sole Street in my constituency be a part of the franchise.
§ Sir George YoungI am sure that many organisations are looking forward to the results of franchising. I hope that the existing trade unions that invested in nationalised industries when we privatised them will also invest in Railtrack in due course.
§ 22. Mr. SkinnerTo ask the Secretary of State for Transport whether he will make a statement on the costs of privatisation of the railways. [30624]
§ Mr. WattsBy the end of 1995–96, total Government privatisation costs are estimated to be some £145 million and some £325 million for British Rail and Railtrack, including some investment in assets or asset management systems. Those costs should be viewed in the context of proceeds in excess of £4 billion and of substantial benefits to rail users as a result of privatisation.
§ Mr. SkinnerWhat has the privatisation of the railway system to do with market forces? As I understand it, the Government have always believed that the market forces philosophy would rule. Yet, through the dogma of privatisation, the Government have decided to privatise the railways while calling upon the taxpayer to find about £850 million per year to allow that privatisation to continue. I remind the Minister that one argument is still prevalent in the Labour movement: a Labour Government's best answer would be to take the network back into public ownership without any compensation.
§ Mr. WattsI hope that the hon. Member for Birmingham, Ladywood (Ms Short) has heard her hon. Friend's comments about the policy of any future Labour Government. The fact is that, with seven franchises operating in the private sector, the costs to the taxpayer in the seventh year of those franchises will be less than a third of the grant paid to British Rail to operate those services in the past year. In the hon. Gentleman's area, the competitive bidding process for the midland main line franchise has ensured a winning bid that will require no subsidy from the taxpayer at the end of the franchise period. A completely new fleet of trains will be purchased in order to increase service frequency to Loughborough, Derby and Nottingham. They are the facts.