Channel Tunnel (Hansard, 30 January 1989)

§ Mr. David Porter
To ask the Secretary of State for Transport what steps he is taking to develop a primary road network in Suffolk and Norfolk suitable for the advent of the Channel tunnel and the European single market.

§ Mr. Peter Bottomley
A primary route network, consisting of trunk roads and principal local authority roads, is already firmly established for the Department's eastern region, which includes Suffolk and Norfolk. We monitor its operation through a joint committee with the seven county surveyors for the region. The effects of predicted traffic growth and road developments on the network are taken into account at each annual review. This would include any increase in traffic to and from Europe through the east coast ports. The Channel tunnel is not expected significantly to influence traffic flows in Suffolk and Norfolk.

§ Sir John Stanley
To ask the Secretary of State for Transport whether the financing of a new railway line between the Channel tunnel terminal area and London can be carried out with public funds.

§ Mr. Portillo
Under section 19(2)(a) of the Transport Act 1962, British Rail has the power to borrow public funds for capital investment.

§ Sir John Stanley
To ask the Secretary of State for Transport whether there is any requirement for a specified minimum rate of return to be achieved if the financing of the construction of a new railway line between the Channel tunnel terminal area and London is to be carried out with public funds.

§ Mr. Portillo
If the new line were to be financed by British Rail, the board would need to demonstrate that the project would produce a commercial return. The discount rate used to test this (currently 7 per cent.) will be agreed between BR and the Department. It will need to reflect the Treasury's required rate of return, which is intended to ensure that commercial public sector investment programmes (such as BR's) provide a rate of return which is broadly equivalent to that which could be achieved in the private sector. The required rate of return was set in 1978 and is reviewed from time to time.

§ Sir John Stanley
To ask the Secretary of State for Transport what are the circumstances in which he will not give his approval to a proposal from British Rail to construct a new railway line between London and the Channel tunnel.

§ Mr. Portillo
We will not give our approval if the board's proposals (which will need to include environmental protection measures) fail to establish a commercial case for the construction of a new line.