§ 2. Mr. Ernest Daviesasked the Minister of Transport and Civil Aviation by how much it is estimated the interest charge on modernisation borrowing, as given in Command Paper No. 9880, will increase as a result of higher interest rates and the increase in cost of the programme from £1,200 million to £1,500 million; by how much revenue will fall short of estimates as a result of these higher charges and the restriction on investment; and what consequent steps the Commission is taking to ensure fulfilment of the estimate that it will be in balance by 1961 or 1962.
§ Mr. WatkinsonIt is not possible to forecast future interest rates. The British Transport Commission has reviewed the estimates in the Command Paper in the light of the best information at present available on all the factors affecting revenue—including the increased cost of the modernisation programme and the restriction on capital investment. They see no reason to depart from the conclusion in the Command Paper.
§ 25. Mr. D. Jonesasked the Minister of Transport and Civil Aviation what amount it is anticipated will be spent by the British Transport Commission in 1958, in connection with their modernisation programme, and what amount on other capital works, excluding the modernisation programme.
§ Mr. WatkinsonIn 1958 the British Transport Commission propose to invest in railways about £145 million, and in their other activities about £25 million. It is not possible to distinguish between replacements and modernisation since most capital investment on the railways includes some modernisation.