§ Mr. OttawayTo ask the Secretary of State for the Environment, Transport and the Regions how much of Eurostar's management company will be controlled by French and Belgian railways; and what percentage shareholdings they currently have in the Eurostar trilateral partnership.[45627]
§ Ms Glenda JacksonThe SNCF and SNCB initial shareholding in the Eurostar management company is proposed to be 35 per cent. and 15 per cent. respectively. This will reduce to 21.7 per cent. and 8.7 per cent. respectively if British Airways exercise an option to increase its shareholding. The Eurostar trilateral126W partnership has no formal shareholding structure. Each company is responsible for operations and physical assets within its own territory.
§ Mr. JenkinsTo ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on the Government's recent decision to write off the cost of Eurostar sleeper trains. [45533]
§ Ms Glenda JacksonThe rolling stock for this service was ordered from Metro Cammel in 1992 by European Night Services Ltd. (ENS) using a lease purchase facility. ENS is a joint venture company owned by Eurostar (UK) Ltd. along with the national railways of France, Germany and Holland. The liabilities of Eurostar (UK) Ltd. under the lease purchase facility were the subject of a Government Guarantee agreed by the previous Government which was notified to Parliament in 1996. Following the decision by ENS not to run night services, the lease on the partially built rolling stock was terminated. Eurostar (UK) Ltd. were unable to meet their portion of the termination of the termination costs so in order to avoid the collapse of the CTRL project, the Government consented to call on their Guarantee being made. The Government made payments to the lessors totalling £109,477,725.33 inc. VAT on 1 June 1998 but have arranged a provision so that there would be an opportunity of a return to the taxpayer in the event that the rolling stock were sold on by the manufacturer.