HC Deb 03 March 1995 vol 255 cc736-7W
Mr. Meacher

To ask the Secretary of State for Transport what has been the level(a) of rebate paid by British Rail to the Treasury for each year it has been paid since 1965, and (b) of British Rail capital investments for each of those years; and what are the estimated figures for (a) and (b) for next year.

Mr. Watts

Between 1976 and March 1994 British Rail had an annual external finance requirement met by subsidy from the Government in the form of grant and borrowing, mostly from the national loans fund. Since April 1994 the railway industry has continued to receive Government support in the form of grants, but has a different financial structure in which British Rail and Railtrack have negative external finance requirements or external finance contributions, which are used to repay debt to the national loans fund.

The outturn external finance requirements from 1979–80 to 1993–94, external finance limits and contributions for 1994–95 and 1995–96 and figures for capital investment in the railways from 1965, in current prices, are as follows:

Year Investment£ million1994–95 prices
1965 1.396
1966 1.200
1967 976
1968 890
1969 608
1970 702
1971 746
1972 775
1973 777
1974 839
1975 969
1976 946
1977 937
1978 941
1979 967
1980 951
1981 810
1982 695
1983 767
1984–851 786
1985–86 855
1986–87 819
1987–88 993
1988–89 977
1989–90 1.119
1990–91 1.216
1991–92 1.442
1992–93 1.552
1993–94 1.188
1994–95 1.000
1 15-month year due to an accounting change from calendar years to financial years.
2 Forecast outturn.

External Finance Requirements
BR/RTEFR£ million 1994–95 prices UR/EPS EFR£ million 1994–95 prices Industry EFR£ million1994–95 prices
1979–80 1791 1.791
1980–81 1672 1.672
1981–82 1853 1.853
1982–83 1528 1.528
1983–84 1396 1.396
1984–85 1713 1.713
External Finance Requirements
BR/RT EFR£ million1994–95 prices UR/EPS EFR£ million1994–95 prices Industry EFR£ million1994–95 prices
1985–86 1414 1.414
1986–87 1172 1.172
1987–88 781 781
1988–89 505 505
1989–90 811 82 892
1990–91 1065 186 1.251
1991–92 1241 360 1.600
1992–93 1688 481 2.170
1993–94 1054 437 1.490

External Finance limits and contributions
BR/RT EFC UR/EPS EFL Grant1 Industry EFL
1994–95 —645 217 1,924 21,496
1995–96 —945 120 1,800 3975

Notes:

1 Estimated grant support to passenger services from 1994–95 includes Franchising Director grant and metropolitan railway grant for PTE services.

2 Industry external finance limit for 1994–95 may increase by a further £64 million to £1,560 million.

3 1995–96 industry external finance limit does not include privatisation effects and includes an estimated £70 million of grant paid by Scottish Office via PTEs to BR.

Ms Glenda Jackson

To ask the Secretary of State for Transport what funds he has made available to British Rail as part of the public service obligation in 1990–91, 1991–92, 1992–93, 1993–94, and 1994–95; and what funds he expects to make available to British Rail or any other rail operator to subsidise socially necessary services in 1995–96, 1996–97, and 1997–98.

Mr. Watts

The information is as follows:

Public service obligation grant
Cash £ million 1994–95 prices £ million
1990–91 602 699
1991–92 892 975
1992–93 1.155 1,214
1993–94 930 949
1994–951 1,700 1.700
1 Estimate of support to passenger services, which from 1994–95 is paid by the Franchising Director. It excludes metropolitan railway grant, estimated to be £224 million, paid by the Department of Transport to passenger transport authorities.

In 1995–96 estimated total grant to support passenger services is £1,800 million. Of the £1,800 million, an estimated £1,610 million will be paid by the Office of Passenger Rail Franchising to British Rail and franchisees, and £190 million will be paid by the Department of Transport to passenger transport authorities.

Estimates of the level of grant support for 1996–97 and 1997–98 are not yet available.