HC Deb 20 October 1989 vol 158 cc257-8W
Sir John Stanley

To ask the Secretary of State for Transport whether he has given the necessary expenditure approval to enable British Rail to deposit a Private Bill to construct the Channel tunnel rail link.

Mr. Portillo

Under section 17(1) of the Transport Act 1962, British Rail requires the formal consent of the Secretary of State to promote a Private Bill, but it does not require formal investment authority at that stage, and the deposit of a Bill by British Rail does not imply Government endorsement of any particular level of expenditure. The Secretary of State's consent for the Bill in question has not yet been sought.

Sir John Stanley

To ask the Secretary of State for Transport whether he is satisfied that British Rail's proposed Channel tunnel rail link will achieve an 8 per cent. rate of return.

Mr. Portillo

British Rail's proposals to provide facilities to deal with international rail traffic when the tunnel opens in 1993 include financial estimates which meet the Government's 8 per cent. required rate of return.

British Rail is currently discussing proposals with the private sector to build a new line to meet the anticipated growth in international traffic after the opening of the tunnel with a view to securing private investment in the scheme. If this were a public sector investment it would still he required to meet the Government's 8 per cent. return.