§ Mr. Spearing
To ask the Secretary of State for Transport if he will place in the Library the basis and calculations used to determine the discounted rate of return on the £20 million expenditure in the electrification of the Cambridge-King's Lynn railway line.
§ Mr. Portillo
The scheme was appraised in the normal way, as described in paragraphs 61 and 62 of the Department of Transport's memorandum to the Select Committee on Transport's examination of the financing of rail services. The board evaluated many options including bus substitution, a DMU shuttle service between Cambridge and King's Lynn, and full electrification. The additional cost of electrification was shown to earn a financial return, at a 7 per cent. discount rate, when compared with all other options, and the project was approved on that basis.