§ Mr. RedwoodTo ask the Secretary of State for Transport, Local Government and the Regions what the expected annual investment spending this year is by London Underground; and what the figure was in 1996–97. [41293]
§ Mr. SpellarLondon Underground is currently forecasting that it will deliver investment expenditure of £422 million in 2001–02, against a Government target of at least £410 million. The equivalent investment figure for investment in the core underground network in 1996–97 at cash prices was £397 million.
Capital renewals accounted for £198 million of the £397 million expenditure in 1996–97. The estimated investment expenditure for 2001–02 reflects London Underground Ltd.'s adoption in 1999 of Financial Reporting Standard (FRS) 15, which requires that such expenditure must now either be charged to cost of operations, or capitalised as an addition to fixed assets.