§ Mr. AllenTo ask the Secretary of State for Transport (1) if he will meet the chairman of British Rail to discuss the disposal of British Rail land in Nottingham;
(2) what rate of return he requires from British Rail on the sale of derelict land holdings;
(3) what rules apply to the sale of British Rail land and the putting out to tender of such land.
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§ Mr. PortilloThe disposal of British Rail land is the responsibility of the British Rail Property Board (BRPB). The board's objectives require it to manage its operational property in accordance with best commercial practice, and to identify and divest itself of all underused or surplus land and property as rapidly as possible, at a proper commercial price.
§ Mr. AllenTo ask the Secretary of State for Transport if he will meet the chairman of British Rail to discuss the electrification of the midlands main line.
§ Mr. PortilloMy right hon. Friend meets the chairman of British Rail regularly. We welcome worthwhile proposals for electrification schemes. I understand that British Rail has no plans to electrify the midland main lines at present.
§ Mr. AllenTo ask the Secretary of State for Transport (1) what correspondence he has had with British Rail regarding the sale of land in Nottingham;
(2) what fiduciary duties apply to the sale of British Rail land.
§ Mr. PortilloMy right hon. Friend has had no such correspondence. The objectives for the British Rail Property Board require it to secure a proper commercial price when disposing of underused or surplus land.
§ Sir John StanleyTo ask the Secretary of State for Transport whether he will place in the Library a copy of the exchange of letters between British Rail and Eurorail referred to in his reply to the right hon. Member for Tonbridge and Mailing of 27 November,Official Report, column 81.
§ Mr. PortilloNo. The letters deal with commercially confidential matters.
§ Sir John StanleyTo ask the Secretary of State for Transport on what points he will require to be satisfied before giving his approval to the detailed shareholders' agreement for the joint venture between British Rail and Eurorail.
§ Mr. PortilloI shall wish to be satisfied that the proposed joint venture offers value for money for British Rail, for the public and for the taxpayer. The details will depend on the ground to be covered by the agreement.
§ Mr. Tony BanksTo ask the Secretary of State for Transport how much direct funding has been provided by Her Majesty's Government to British Rail for(a) capital investment and (b) revenue subsidy in each year from 1980–81 to 1989–90 and projected for 1990–91, all expressed at constant prices.
§ Mr. PortilloHer Majesty's Government do not usually provide direct funding for British Rail's capital investment programme, but the public service obligation grants meets the difference between costs and revenues for grant supported services. Eligible costs include depreciation, a supplement to fund capital renewals, and interest. Grant therefore provides support for capital investment, but grant is not allocated to particular categories of expenditure. The figures for "rail" investment and for revenue subsidy (PSO and level crossings grants paid in each financial year) are as follows, in £ million and at constant 1989–90 prices:
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Year Rail investment Revenue subsidy 1979 526 1,040 1980 537 1,035 1981 439 1,262 1982 357 1,222 1983 352 1,202 1984 1374 1,110 1985–86 498 1,060 1986–87 482 912 1987–88 604 915 1988–89 609 2590 1989–90 2691 3517 41990–91 962 462 1 1984–85 was a 15 month financial period. The figure shown for 1984 is the 12 month equivalent. 2 Current forecast. 3 PSO cash ceiling plus estimate for level crossings grant. 4 Estimates.