HC Deb 26 March 1996 vol 274 c554W
Mr. Riddick

To ask the Secretary of State for Transport if he has set revised figures for external finance limits and contributions for the railway industries; and what estimates he has made of proceeds form the sales of businesses and the external finance contributions lost when those businesses were sold. [23238]

Mr. Watts

The revised figures for 1995–96 are as follows:

£ million
Grants 1,805
BR EFC -730
Railtrack EFC -114
BR/Railtrack EFL 961
Privatisation effects -980
Total national rail -19
EPS + Union Railways 317
Total rail 298

1. EFC means external financing contribution. EFL means external financing limit.

2. Grants include support to passenger rail services paid by the Franchising Director and metropolitan railway grant, including approximately £70 million of grant paid by the Scottish Office in support of passenger transport executive services in Scotland.

3. Privatisation effects is an estimate of the proceeds from sales of rail businesses less their EFCs. Proceeds are forecast to be some £1,280 million, of which some £740 million is attributable to sale of the rolling stock lease companies, some £133 million to the sale of British Rail Telecommunications Ltd and some £30 million to the sale of British Rail Maintenance Ltd. Proceeds may be subject to adjustments when completion accounts are agreed. Lost EFCs in 1995–96 are forecast to be approximately, £300 million. Total of proceeds from the sale of the rolling stock lease companies will comprise approximately a further £1 billion in 1996–97 and a deferred consideration of up to £80 million.

4. The EPS and Union Railways EFL was increased in year by calls on the Reserve of £197 million. The EFL set at the beginning of the current financial year covered only the period 1 April 1995 to 30 September 1995.