§ Mr. AdleyTo ask the Secretary of State for Transport whether subsidies to state railway companies in EEC countries contravene EEC competition policy.
§ Mr. FreemanThere are special rules under EC directives and regulations governing the payment of subsidies to railways. It is for the Governments of the countries concerned to comply with the relevant Community legislation and respect the competition rules of the EEC treaty and it is for the Commission to ensure that member states respect these obligations. I am satisfied that the grant paid to British Rail in respect of services carried out under the public service obligation fully complies with the relevant EC directive.