§ 14. Mr. BayleyTo ask the Secretary of State for Transport if he will make a statement on the franchising of rail services. [18005]
§ Mr. WattsThe franchising programme is making good progress. Fourteen of the 25 train operating companies, representing 61 per cent. of passenger revenue in the financial year 1994–95, have either been franchised or are in the process of being sold.
§ Mr. BayleyDo the Government still subscribe to the view that rail privatisation will bring increased competition? if so, do they regard it as a failure of policy that Wisconsin Transportation now owns all four freight companies? Is it true that the previous Secretary of State for Transport, the right hon. Member for Peterborough (Dr. Mawhinney), went to the United States to encourage Wisconsin Transportation to bid for all four companies? What plans do the Government have to prevent private rail operators from taking over one another and creating massive private rail monopolies?
§ Mr. WattsTrain freight companies are not franchised, which was the point of the hon. Gentleman's original question, but sold. With his wide knowledge of transport, the hon. Gentleman will recognise that Railfreight has plenty of competitors, notably from the road haulage industry, and it was the verdict of the market that Railfreight would be stronger with the three companies in common ownership, because that view was reflected in all of the bids.
§ Mr. LidingtonIs my hon. Friend aware of the widespread concern in my constituency that the public service obligations required of bidders for the Chiltern franchise are not compatible with the proposed freight service sought by Central Railways Ltd.? Will he therefore issue clear guidance so that bidders for the Chiltern franchise and the customers who value the Chiltern passenger service know exactly where they stand?
§ Mr. WattsNo subsequent proposal can pose any threat to the continuation of passenger services, which are protected and guaranteed for the first time by passenger service requirements.