§ Mr. David ShawTo ask the Secretary of State for Transport what criteria he will be using to determine whether British Rail's proposals for the construction of a new railway line in Kent establish a commercial case for the new line; whether his Department will be taking independent economic and financial advice on such proposals; and whether he will publish any reports prepared by his Department or by independent financial advisers.
§ Mr. PortilloAs with all British Rail's major commercial investment, if and when British Rail submits proposals for the construction of a new line in Kent, the Department will expect that investment to earn the required rate of return and will need to satisfy itself that the proposals are financially sound. Such Departmental appraisals are not published since they inevitably contain commercially sensitive information.
§ Mr. David ShawTo ask the Secretary of State for Transport what discount rate he proposes to use in establishing whether British Rail's proposals for a new Kent railway line offer a commercial return; and whether he will revise the discount rate formula for this project to one requiring a rate of return equivalent to commercial rates of return for new private sector capital projects.
§ Mr. PortilloI refer to my answer to the right hon. Member for Tonbridge and Malling (Sir J. Stanley) on 30 Janauary,Official Report, column 53.