§ 32. Mr. Austin Mitchell (Great Grimsby)If he will introduce measures to accelerate the purchase of new rolling stock. [39538]
§ The Secretary of State for the Environment, Transport and the Regions (Mr. John Prescott)On 21 January, I asked the rail regulator to conduct a wide-ranging inquiry into the operation of the rolling stock leasing market. One of the issues that I asked him to look at was investment in new rolling stock. The regulator has submitted his report and I am discussing with him whether further action is required in the light of his recommendations.
§ Mr. MitchellI am very glad to hear my right hon. Friend's news. I hope that he will encourage passenger operators to follow the example of the freight operator in buying new rolling stock to boost the British rolling stock and engine industry, which has been disastrously hard hit by privatisation. Will he do so by pushing the rolling stock companies into buying new rolling stock rather than siphoning off their ill-gotten gains, as if they were lottery 559 profits, as they have been doing? That would be a better way of acquiring new rolling stock than, as Great North Eastern Railway Ltd. wants, extending the franchise.
§ Mr. PrescottI think that the House is aware of how the assets under the three ROSCOs were quite shamelessly undersold, costing the taxpayer about £750 million. It is our concern to get investment in the railway system. I was concerned that a number of operators had found it difficult to make leasing arrangements with the ROSCOs, which was one of the reasons why I asked the regulator to conduct his inquiry. As soon as I have considered his recommendations, I shall report to the House.
§ Sir Sydney Chapman (Chipping Barnet)When will the new rolling stock that was promised last year finally appear on the London underground Northern line? What has been the reason for the considerable delay? As the project was financed under the private finance initiative, have financial penalties been imposed on the contractors?
§ Mr. PrescottMy hon. Friend the Minister for Transport in London advises me that much of the new rolling stock is being tested. We hope to see that new investment on the line as quickly as possible. For the long term, the question is how much essential investment we can secure to modernise most of the rolling stock on the London underground. If the hon. Gentleman wants, I will find out the exact position and write to him about it.
§ Mr. Paul Burstow (Sutton and Cheam)Does the right hon. Gentleman agree that the previous Government's failure to write rolling stock replacement programmes into franchise agreements has meant that many of our constituents have to travel on ancient, unsafe and inadequate trains, with no prospect of the franchisees replacing the trains throughout the entire life of the franchise? Will he do something about that to ensure that my constituents do not have to travel on such unsafe and dangerous trains?
§ Mr. PrescottYes, that is a matter of major concern. Some operators have asked for an extension of their franchise, tied to an intention to introduce new investment, but I thought that the intention was to introduce new investment without the extension of franchises. That was exactly the case for Great North Eastern Railway. It complained that the ROSCOs would not give it sufficient finances during its short franchise. I do not believe that to be so, and have not found it not to be so. Sometimes, pressure is being exerted to extend franchises instead of getting on with introducing new investment. I am addressing myself to that problem.