HL Deb 20 March 1996 vol 570 cc1271-3

2.44 p.m.

Lord Berkeley asked Her Majesty's Government:

What is their policy in respect of the sale of former British Rail land holdings.

The Earl of Courtown: My Lords, the Government's objectives for the British Rail Property Board are for British Rail to manage its property in accordance with best commercial practice and to identify and dispose of all its underused or surplus land and property at a proper commercial price.

Lord Berkeley

My Lords, I thank the Minister for that Answer, which in fact deals with just half of the property which was divided up when British Rail split from Railtrack. There is also the question of Railtrack's property. Is the Minister aware of the Government's statutory duty through the regulator to encourage rail freight? I have received complaints from both present and future rail operators around the country stating that the British Rail Property Board and Railtrack are thwarting their plans by selling off railway-connected land for supermarkets and so on, rather than leasing such property at what should be peppercorn rents for those operators. Is it not scandalous that short-term profit motives are preventing rail freight business from developing? Can the Minister please comment?

The Earl of Courtown

My Lords, as the noble Lord said, after the Railways Act 1993 was put into effect property was divided between Railtrack, which took on the operational property, and the British Rail Property Board for British Rail, which took on non-operational property. As regards the non-operational property, Railtrack was consulted over which areas of land would be placed on the list and they are being marketed as time goes by to gain the best possible price. If people in industry and in various other areas are concerned over the sale of such land, they should make their requests and desires known to the British Rail Property Board which can then notify them of any property being sold.

Lord Ewing of Kirkford

My Lords, is the Minister aware that his answer appears to be at least contrary to the terms of the legislation? The 94 strategic sites at issue in the Question that has been tabled were handed over to Railtrack to be held in trust for the future development of rail freight. Are the Government really prepared to sit back and allow such sales to continue in direct breach of their own legislation? Is it not about time that the Government, through the regulator, imposed the terms of their own Act?

The Earl of Courtown

My Lords, I do not know of the occasions where planning applications have been lodged as regards development on strategic sites for supermarkets and whatever else the noble Lord, Lord Berkeley, mentioned. However, there is protection for those strategic freight terminals in the future. As the noble Lord, Lord Ewing of Kirkford, said, there are roughly 100 such former sites owned by Railtrack which have been designated as strategic freight sites. Freight operators can call for a lease from Railtrack if they can return a strategic site to freight use. Railtrack has to consult significant freight operators before a site can be deleted from the list. That stems from the Government's desire to ensure that the sites with rail freight potential are kept available for freight use.

Lord Astor of Hever

My Lords, can my noble friend the Minister tell the House how much land is owned by British Rail?

The Earl of Courtown

My Lords, I believe that the British Rail Property Board actually looks after 4,000 acres of land, which is 1,600 hectares, and roughly 500 redundant constructions such as bridges and various other structures.

Lord Wallace of Saltaire

My Lords, is the Minister familiar with the recent report from the Department of the Environment on the need to reverse the shift from rail to road in terms of transport? Further, is he convinced that enough care is, therefore, being taken to safeguard disused rail track that may now he needed to reinvent trains and tram tracks in urban areas?

The Earl of Courtown

My Lords, the noble Lord has made an important point. Yes, we are aware that those corridors should be protected, if necessary. British Rail will consult Railtrack, train operating companies and local authorities before proceeding with the disposal of disused track.

Lord Clinton-Davis

My Lords, does the Minister say that the department has received no complaints from freight companies about the way in which Railtrack and the British Rail Property Board have disposed and continue to dispose of land which has substantial commercial value? After all, those are public assets. Is it not clear from evidence that my noble friends, as well as I, have received that Railtrack and the British Rail Property Board are more concerned about the sale of such assets, to the detriment of freight interests, notwithstanding their statutory obligations? Since the regulator and the Minister are involved in the situation, should there not be an independent inquiry into what is happening to those public assets?

The Earl of Courtown

My Lords, no. We are referring here to different areas: Railtrack and the British Rail Property Board. The noble Lord asks for far too much.

The noble Lord spoke of complaints being made to the department. Perhaps he is referring to representations made by Rail Freight Group concerning a terminal at Holyhead which was not on the former freight site. I understand that the Piggyback Consortium was somewhat concerned that it did not have a chance to purchase it. It was advertised from the beginning of January, with the auction towards the end of February. Four and a half thousand particulars were sent out. As I said earlier to the noble Lord, Lord Berkeley, if companies are looking for property in this sector, they should go to the British Rail Property Board.

Lord Stallard

My Lords, can the Minister tell us about the consultative process which takes place between British Rail and freight companies? What process took place before the sale of those sites?

The Earl of Courtown

My Lords, I believe that I have already answered that question. I shall read Hansard. If I have not done so, I shall write to the noble Lord.