§ Mr. David MarshallTo ask the Secretary of State for Scotland if he will give details of the grant aid paid by central Government to British Rail for(a) the restoration of double track and related modernisation of the Perth to Inverness line and (b) the resignalling of the Perth to Inverness line since 1970; what grant, other than section 56 grant, was paid towards these two projects; and what was the economic rate of return, both before and after grant, for each project, or the project as a whole, on the basis of which grant was paid.
§ Mr. FreemanI have been asked to reply.
Detailed information on these schemes is not held in the Department. However, public service obligation grant is paid towards the difference between the costs and revenues of the subsidised sectors of British Rail. It is not hypothecated to particular costs or individual projects.
A rate of return would not have been calculated in assessing these projects, because there is no requirement for investment which renews existing assets of services supported by public service obligation grant to earn a specific rate of return. The option chosen is that which maintains services at least net cost.