HL Deb 18 April 1995 vol 563 cc384-6

2.56 p.m.

Lord Clinton-Davis asked Her Majesty's Government:

What their response is to the report Investing in Britain's Railways, published on 22nd March; and whether they agree with the recommendation of that report that much greater investment in the railway system is required.

Viscount Goschen

My Lords, the Government welcome well-informed contributions to the debate on the role of Britain's railways. It is disappointing, however, that the report does not give credit to the Government for the record levels of investment in recent years. Also, it does not acknowledge the significant investment which we expect to flow from the private finance initiative or the improvements to come from railway privatisation.

Lord Clinton-Davis

My Lords, is the Minister aware that he has dealt with the report in a less than satisfactory way? Is he aware that one of the major criticisms of the report is the absence of a clear, long-term framework for the railways in the Government's planning? Does the Minister agree that that is in marked contrast to the situation among our friends and competitors in the Netherlands, France and Germany where investment is substantially proportionately in excess of everything the Government claim to have done in this country?

Viscount Goschen

My Lords, when the noble Lord reads my original Answer I believe he will see that I did not, as he may have suggested, rubbish the report. It is a well informed document. It takes for granted, however, the source of the funding and it does not take into consideration the levels of investment which will flow from privatisation. The Government Firmly believe that the privatisation initiative will bring substantial extra resources into the railways and enable the system to develop.

Viscount Caldecote

My Lords, does my noble friend agree that it is highly desirable that investment should continue in the Highland railways in Scotland and that there should be no further reduction in the facilities there in view of their importance to the tourist trade?

Viscount Goschen

My Lords, I agree with my noble friend that investment is an essential commodity throughout the railways.

Lord Ezra

My Lords, does the noble Viscount agree that the long drawn out nature of the privatisation process, as planned by the Government, could have a harmful and delaying effect on the rate of investment which would otherwise have occurred?

Viscount Goschen

My Lords, we firmly believe that the goal of attaining privatisation, the new initiatives which will be introduced, the extra finance and the management techniques which will be brought forward will result in a significantly better railway. That goal is well worth any possible problems which may arise along the way such as the noble Lord suggests. We believe that the privatisation initiative will be a tremendous success for the railways.

Lord Clinton-Davis

My Lords, is the Minister aware that all his aspirations about privatisation are likely to come to as much grief as the Government's promises about taxation at the last election? Is he further aware that the privatisation proposal has failed to focus attention on the real requirements of the railways, which are much greater investment and prioritising those requirements as against investment on roads? Does the Minister agree that one of the difficulties about the private finance initiative is that the Government are asking the private funding sector to assume a great deal of risk without providing proper underpinning? That is why I believe the initiative will come to grief.

Viscount Goschen

My Lords, I believe that the simple answer is no. I do not agree with the noble Lord in his assessment of the private finance initiative. We believe that it has considerable potential for bringing new money into the railways and hence benefits for the travelling public.

Lord Mackie of Benshie

My Lords, can the Minister follow his answer about his great belief in privatisation by telling us why no company will be given a chance to make Motorail and the night sleeper service to Fort William work?

Viscount Goschen

My Lords, that is not the case. As the noble Lord well knows, the fact that a service may not be included in the passenger service requirement does not in any way mean that the successful franchisee will not be able to run that service if he so chooses.

Lord Stoddart of Swindon

My Lords, will the noble Viscount confirm that it is still the Government's policy to increase the taxation of road vehicles above the retail prices index in order to contribute towards a reduction in CO2 levels and a reduction in the risk of global warming? If that is so, will the noble Viscount and the Government consider hypothecating such additional revenues so that they can be invested in the railways and other forms of public transport?

Viscount Goschen

My Lords, my right honourable friend the Chancellor of the Exchequer has made commitments on the taxation of fuel for road vehicles. I do not believe that it is the Government's policy to hypothecate funds in the manner the noble Lord suggests. However, I am sure that when the Official Report is read, the noble Lord's comments will be considered carefully.