Network Rail (Hansard, 8 July 2002)

§ Mr. Don Foster
To ask the Secretary of State for Transport, pursuant to his answer of 25 June 2002,Official Report, column 774W, on Network Rail, if he will list the (a) funders and (b) customers to whom he refers; and if he will provide details of the obligations in each case. [66067]

§ Mr. Jamieson
The Strategic Rail Authority would fund Network Rail by means of future grants and will provide back-stop credit facilities as set out in the statement made to the House by my right hon. Friend the Secretary of State on 27 June 2002,Official Report, columns 971–989, and in the minutes, mentioned in the statement, which have been laid before the House. In addition to the SRA, Network Rail would have a number of commercial funders. Network Rail's customers would be the train and freight operating companies. Their obligations would be in accordance with the track and station access agreements for each operating company. These agreements are available from the office of the rail regulator.

§ Mrs. May
To ask the Secretary of State for Transport, under the Network Rail proposal, what call there is on Railtrack Group PLC under the outstanding guarantees in respect of(a) the European Investment Bank facilities made available to Railtrack PLC and (b) the bank facilities which have been made available to London and Continental Railways Limited in connection with the CTRL. [66531]

§ Mr. Jamieson
[holding answer 2 July 2002]None.

§ Mrs. May
To ask the Secretary of State for Transport if he will list the incentive arrangements with regard to Network Rail and possible enhancement projects; and if he will make a statement. [66602]

§ Mr. Jamieson
[holding answer 2 July 2002]Network Rail will prepare and publish an incentive plan annually. The plan will cover both the short and the long run delivery of the business and be focused on delivery of the business plan, including enhancement projects, and on meeting licence and contractual obligations.

§ Mrs. May
To ask the Secretary of State for Transport if he will make a statement on the mechanism by which members of Network Rail will be held accountable by(a) customers, (b) the general public, (c) the Executive and (d) Parliament. [66543]

§ Mr. Jamieson
[holding answer 2 July 2002]Network Rail would he accountable via its network licence and contractual obligations. Its customers could ensure that the company meets its contractual obligations to them; the Rail Regulator would continue to monitor and enforce delivery against the network licence; and the Strategic Rail Authority's strategic plan will set the framework within which the company would deliver and particularly within which enhancements will be taken forward.
672W
The strategic plan is laid before Parliament. The SRA would also appoint a non-executive director to the Network Rail board.

§ Mrs. May
To ask the Secretary of State for Transport (1) if he will make a statement on the mechanism for selecting the members of the nominating committee for Network Rail members; [66542]
(2) by what mechanism people and groups will be appointed to be members of Network Rail; how many will be appointed; and on what date. [66540]

§ Mr. Jamieson
[holding answer 2 July 2002]Network Rail would have three categories of members: "industry members"—railway licence holders; "public interest members"—drawn from the community at large, with a clear interest in the railway and the ability to make a genuine contribution; and the "SRA member"—nominated by the Strategic Rail Authority. Network Rail expects there to be around 100 members in total.
Network Rail intends to recruit public interest members by invitation and through advertisement and will appoint a membership selection panel (MSP), with an independent majority, to consider applications against a membership policy. The board would appoint public interest members on the recommendation of the MSP. The detail and timing of these arrangements are matters for Network Rail to determine.