HC Deb 27 October 1989 vol 158 cc642-3W
Mr. Spearing

To ask the Secretary of State for Transport what considerations he takes into account, when approving or applying for permission to initiate smaller scale schemes of capital improvements to railway infrastructure, not subject to the investment return criteria normally imposed.

Mr. Portillo

British Rail submits certain schemes over £10 million for infrastructure or rolling stock to my right hon. Friend for authorisation. Smaller schemes are approved by British Rail. Schemes are currently appraised using an 8 per cent. discount rate, and we expect to approve schemes which either:

  1. (i) earn a commercial return;
  2. (ii) represent the most cost-effective way of continuing to provide grant-aided services to the agreed quality standards;
  3. (iii) will be worth while because the cost will be less than the revenues to be earned from passengers and the benefits to non-users, eg in relief of road congestion;
  4. (iv) offer land development advantages, where beneficiaries may be expected to make an appropriate contribution to costs.