Channel Tunnel (Hansard, 14 December 1989)

§ Mr. Parkinson

The British Railways board has today published the plan which it is required to prepare under 767W section 40 of the Channel Tunnel Act 1987. This plan sets out the board's current proposals for commercially viable passenger, freight and parcels services through the Channel tunnel serving various parts of the United Kingdom.

In addition to the board's proposals for passenger services between London and Paris and between London and Brussels, the plan includes proposals for a number of direct through services between destinations beyond London and mainland Europe providing over 3 million seats a year. The amount of traffic that will be attracted to such services is difficult to judge exactly before the Channel tunnel opens, and the board's proposals are intended to test the market for them. The initial service level may be expanded if the actual traffic exceeds expectations. If on the other hand the actual traffic level is insufficient to justify some of the services proposed, the board will need to reconsider the case for continuing to provide them. I am, however, optimistic that passengers will be keen to take advantage of this exciting new opportunity to travel directly between the regions and mainland Europe without having to change trains in London.

The plan also sets out the board's current proposals for freight and parcels services. I have asked the board to consider how they might improve the financial performance of their non-bulk freight sector to maximise the involvement of the private sector, and to reshape the business to seize the new opportunities presented by the Channel tunnel. I expect the board's proposals to develop, as their non-bulk strategy develops. Over 70 per cent. of the forecast rail freight traffic through the Channel tunnel will begin or end its journey beyond London, and the board's freight proposals reflect this emphasis. The detailed pattern of services is still under discussion with the board's freight customers and with potential private sector partners, but it is clear that the board's plans are based on the operation of fast through freight services between the United Kingdom regions and mainland Europe. These services will transform the opportunities available to United Kingdom manufacturers and traders for sending their goods through to the rest of Europe. Goods from Scotland and the north of England will be able to reach some continental destinations within 24 hours, and more distant places such as Munich and Milan within 48 hours, compared with the current transit time by road and ferry of at least 72 hours.

British Rail announced on 3 November that it had selected Eurorail, comprising Trafalgar House and BICC, as its preferred partner in a joint venture for Channel tunnel rail services. In addition to operation of the initial pattern of rail services through the tunnel, the joint venture will be responsible for constructing a new rail link between London and the tunnel; there is already a very high standard of rail infrastructure on the lines beyond London. Through services between the United Kingdom regions and mainland Europe are not, however, dependent on the construction of the new link. The proposals set out by British Rail in its plans are intended to come into effect as soon as the tunnel opens, and British Rail is confident that its existing network will have sufficient capacity for the additional Channel tunnel traffic for a number of years before the new link is needed.

I welcome the publication of this plan, which sets out clearly British Rail's proposals for making the most of the opportunities offered by the tunnel. Others will now want to express their views on the proposals put forward. The 768W plan can do no more than set out British Rail's current view of the opportunities, and I have no doubt that British Rail will continue to develop its plans, both during the period up to the opening of the tunnel and thereafter, as the pattern of demand and the associated commercial opportunities become clearer.