HC Deb 31 March 1998 vol 309 c1025
26. Jane Griffiths

If he will make a statement on the operation of the rail rolling stock market. [35470]

Mr. Prescott

On 21 January I asked the Rail Regulator to conduct a wide-ranging inquiry into the operation of the rolling stock leasing market and report his findings to me by mid-April. We will decide whether further action is required in the light of the regulator's recommendations.

Jane Griffiths

Is my right hon. Friend aware that the National Audit Office has reported that the value of the rail rolling stock companies' cash flow was £2.9 billion, but that, because the sale was rushed through by the Tories on the basis of inadequate valuations, the nation's trains—our trains—were sold off for only £1.8 billion? Does my right hon. Friend agree that the privatisation of the rail rolling stock companies was the Tories' great train robbery?

Mr. Prescott

There is absolutely no doubt, especially after the National Audit Office's report, that there was a scandalous sale of the leasing companies and much of the privatised railways: it was identified that assets had been undersold and that a massive profit had been made. The Department will appear before the audit committee, and I hope that the Rail Regulator will make some recommendations in respect of the changes that need to be made.

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