§ Mr. Costainasked the Secretary of State for the Environment whether he will con- 268W tinue to exercise his powers under the Transport Act 1968 to purchase blighted land in the former Channel Tunnel terminal area; and if he will make a statement.
§ Mr. MulleyYes. I have agreed with the local authorities concerned that a limited zone of interest will need to be retained for possible future Channel Tunnel purposes. It will comprise the former terminal area and immediately associated sites. Within that zone I shall be prepared to consider buying properties in cases where blight is causing hardship.
§ Mr. Moateasked the Secretary of State for the Environment if the Government are entering into or are party to any formal option arrangements with the French Government or commercial companies for the recommencement of work on the Channel Tunnel project.
§ Mr. MulleyNo.
§ Mr. Moateasked the Secretary of State for the Environment what progress has been made in settling the question of compensation consequent upon the abandonment of the Channel Tunnel project; and what is his latest estimate of the final cost to the taxpayer.
§ Mr. MulleyThe compensation due to the Channel Tunnel Companies is set out in Agreement No. 2. While I await final accountants' certificates, it appears that the total payable is some £17 million, half of which falls on Her Majesty's Government. Her Majesty's Government's share in respect of guaranteed funds expended by 27th January 1975 is expected to be of the order of £4.5 million, and of additional guaranteed funds expended by 22nd March to be some £3 million. Total obligations on Her Majesty's Government accruing by that date will, therefore, be of the order of £16 million. It is not yet, however, possible to give a precise estimate of subsequent expenditure and, in particular, of the costs of ensuring the safety of the works and of cancellation charges on the principal contracts.