HC Deb 13 January 1997 vol 288 cc113-4W
Mr. Illsley

To ask the Secretary of State for Transport (1) if he will carry out a review of the basis on which his Department took its initial decision to award a section 56 grant to the South Yorkshire supertram project; [10316]

(2) what assessment he has made of his Department's role in sanctioning the total funding package for the South Yorkshire supertram. [10315]

Mr. Watts

As with all such cases, the Department's decision to award section 56 grant, and to sanction other elements of the funding package, was based on an appraisal put forward by the promoter of the project, in this instance South Yorkshire passenger transport executive, and was in accordance with the procedures and criteria published in circular 3/89, "Section 56 Grant for Public Transport." I will consider whether experience of South Yorkshire supertram has wider implications.

Mr Illsley

To ask the Secretary of State for Transport if he will(a) publish and (b) place in the Library the results of studies undertaken by his Department into the cost-effectiveness of his Department's support for the South Yorkshire supertram. [10317]

Mr. Watts

Work is still in progress on the supertram monitoring study, commissioned jointly by my Department and South Yorkshire PTE. The "before" surveys relating to this project have already been published. When the full study has been completed, my Department will be discussing arrangements for publication with South Yorkshire PTE.

Mr. Illsley

To ask the Secretary of State for Transport (1) what assessment he has made of the liabilities which will fall due to the South Yorkshire metropolitan borough councils after 31 March 1997, arising from the South Yorkshire supertram project; [10320]

(2) what assessment he has made of the advantages of extending the period over which debts incurred by the South Yorkshire metropolitan borough councils arising out of the construction and operation of supertram may be repaid. [10319]

Mr. Watts

My Department and the South Yorkshire local authorities are currently discussing these issues.

Mr. Illsley

To ask the Secretary of State for Transport if he will list the costs to public funds to date of the South Yorkshire supertram project, including all credit approvals, capitalised debts, revenue costs and other liabilities. [10318]

Mr. Watts

The funding authorised by my Department for the construction costs of South Yorkshire supertram is as follows:

£ million
Section 56 grant 62.529
Non-trading credit approvals 62.529
Trading credit approvals 81.741
Capitalised interest 15.790
ERDF grant 6.526
Pre-1991 spending 12.759
Total 241.874

The figure for pre-1991 spending includes some items that were funded by South Yorkshire PTE. The total does not include administrative costs incurred by my Department, which could be quantified only at disproportionate cost. These figures do not include operating losses and other post-construction costs, which are a matter for South Yorkshire PTE.