§ Mr. DrewTo ask the Secretary of State for Transport, Local Government and the Regions if he will list the level of Government financial support given to Railtrack in each year since its inception. [8486]
§ Mr. JamiesonIn 1994–95 and 1995–96, when Railtrack was still in the public sector, grants of £32 million and £34 million were paid to the company towards the cost of maintaining level crossings. Since its privatisation in 1996, the company has recovered that cost and other costs through access charges paid to it by train operating companies (TOCs) and others. So, although no public money was paid direct to Railtrack between 1996–97 and 2000–01, the company's profitability in those years was contingent on public money. Some 85 per cent, of its income is paid to it in access charges by TOCs, most of which are supported by public money.
In future Railtrack, or its successor body, will continue to receive income from TOCs, the large majority of which will continue to receive subsidy from the SRA. In addition, in accordance with the terms of Railtrack's 2 April agreement with Government, Railtrack received £337 million of network grant on 1 October 2001; and, when requested by the administrators, it will receive £162 million of network grant in respect of the (October 2000) final conclusions of the Rail Regulator's periodic review of access charges.
§ Mr. DrewTo ask the Secretary of State for Transport, Local Government and the Regions if he will make a statement on the relationship between Railtrack and the British Rail Property Board. [8487]
§ Mr. JamiesonThe British Rail Property Board became Rail Property Ltd. in July 1997. It is now a subsidiary company of the Strategic Rail Authority. It has commercial dealings with Railtrack from time to time.
§ Mr. HobanTo ask the Secretary of State for Transport, Local Government and the Regions what representations he made to the directors of(a) Railtrack Group plc and (b) Railtrack plc in connection with the financial statements for the year ended 31 March. [8190]
§ Mr. JamiesonNone. The financial statements contained in Railtrack's annual report and accounts for 2000–01 are a matter for its Board of Directors and its auditors.
§ Mr. HobanTo ask the Secretary of State for Transport, Local Government and the Regions who will serve on the board of the successor company to Railtrack plc. [8183]
1316W
§ Mr. JamiesonThe identity of the directors of the proposed company has yet to be determined. Initially, the Strategic Rail Authority, in consultation with rail industry stakeholders and existing senior management of the company, would appoint directors. Members—a large majority of whom would be from the private sector—would be invited to confirm these initial appointments at a special general meeting. Subsequent board appointments would be decided by the board itself. Members would have the power to remove directors and would therefore have an effective right of veto. We anticipate this process would produce a highly competent board, representative of the interests of railway industry stakeholders.
§ Mr. HobanTo ask the Secretary of State for Transport, Local Government and the Regions what financial guarantees will be given in respect to debt finance obtained by the successor company to Railtrack plc. [8188]
§ Mr. JamiesonThe Government have proposed a private sector Company Limited by Guarantee to succeed Railtrack and intend to agree a transfer scheme with the Railway Administrators. We plan to structure this new company so that it would achieve at least a BBB investment grade credit rating as the basis to raise debt finance.
The new company would be entitled to receive track access payments from train operators along with the network grants from the SRA agreed as part of the Rail Regulator's October 2000 Periodic Review and the 2 April agreement between Railtrack and Government. These sources of income would be available to help achieve at least the BBB credit rating.
§ Mr. HobanTo ask the Secretary of State for Transport, Local Government and the Regions what events occurred subsequent to 3 July which required him to review the ownership and structure of the railway industry. [8192]
§ Mr. JamiesonI refer the hon. Member to the statement made to the House by my right hon. Friend the Secretary of State for Transport, Local Government and the Regions on 15 October 2001,Official Report, column 954.
§ Mr. HobanTo ask the Secretary of State for Transport. Local Government and the Regions if he will publish the legal advice he received concerning the use of section 59 of the Railways Act 1993. [8191]
§ Mr. JamiesonNo. My right hon. Friend the Secretary of State for Transport, Local Government and the Regions does not intend to publish any such legal advice.