HC Deb 15 March 1993 vol 221 cc97-8W
Mr. Matthew Banks

To ask the Secretary of State for Transport what progress is being made by British Rail to sell rolling stock to private sector companies for refurbishment; what plans British Rail has to lease the newly refurbished rolling stock back to realise capital for other investment; and if he will make a statement.

Mr. Freeman

The Government recently issued a consultation document, "Railway Privatisation: Passenger Rolling Stock", which sets out a number of options, including the formation of leasing companies. This is now being discussed with industry, financiers and other interested parties. I hope to make a statement on the results of these discussions after Easter.

Mr. Matthew Banks

To ask the Secretary of State for Transport what action he is taking to ensure any leasing arrangement made by British Rail for rolling stock does not count against its external financing limit.

Mr. Freeman

I can confirm that for rolling stock ordered under the £150 million leasing arrangement announced by the Chancellor at the time of the autumn statement, only the lease rental payments will count against British Rail's external finance limit. The full capital cost will not be scored up front as would be the case if British Rail purchased the stock.

Sir Keith Speed

To ask the Secretary of State for Transport what recent discussions have taken place between his Department and British Rail over the spending on new rolling stock of the £150 million available for lease finance announced in the autumn statement by the Chancellor of the Exchequer; and if he will make a statement.

Mr. Freeman

I have asked BR to make proposals to me, by Easter, for the rolling stock that it wishes to order using these leasing facilities.