§ Mr. SnapeTo ask the Secretary of State for Transport (1) how much of British Rail's investment programme of £3.75 billion will be financed from its own internally generated cash flow, excluding payments from passenger transport executives under section 20 of the Transport Act 1968 in respect of services operated by British Rail in metropolitan areas;
(2) how much of British Rail's investment programme of £3.75 billion will be financed by passenger transport executives under section 20 of the Transport Act 1968 in respect of services operated by British Rail in metropolitan areas;
(3) how much of British Rail's investment programme of £3.75 billion will be financed externally; and whether the external finance will have to meet the Treasury's criteria of an 8 per cent. rate of return.
§ Mr. PortilloOver the next three years, British Rail plans to finance net operating losses of some £0.7 billion and investment of £3.75 billion. Internal resources from depreciation, working capital reductions and asset sales will provide £2 billion. External finance from borrowing and PSO grant will provide £2.2 billion. PTE payments will total £0.25 billion. We do not specifically apportion particular forms of finance between investment and other expenditure. The appraisal criteria for BR investment depend on the nature of the project, not on how it is financed.
§ Mr. SnapeTo ask the Secretary of State for Transport what cash resources he plans to allocate to British Rail to invest in advanced train protection, resignalling, and other safety measures recommended by the Hidden report.
§ Mr. PortilloI refer the hon. Member to the reply to the hon. Member for Southwark and Bermondsey (Mr. Hughes) on 4 December 1989, at column 88. As my right hon. Friend has told the House, finance will not stand in the way of implementing the report.