Mr. Alan WilliamsTo ask the Secretary of State for Transport if falling interest rates result in any reduction in the total sum which was agreed with the concessionaire for the second Severn crossing in 1989; what was the prevailing relevant interest level at the time of that agreement; and what is its equivalent level today.
§ Mr. ChopeUnder the concession agreement with Severn River Crossing plc, SRC bears the risk of changes in interest rates. Changes in rates, in either direction, do not affect SRC's tolls or revenue entitlement under the agreement. The concession agreement was executed on 29 October 1990, when the clearing bank rates was 14 per cent.; the rate is now 11 per cent.