Mr. Robert AinsworthTo ask the Secretary of State for Transport how he proposes Rail Track will raise investment income to maintain and extend the network; and if he will make a statement on the impact of franchise costs.
§ Mr. FreemanInvestment will largely be financed over its life from charges to operators. However, the 555W Government are also ready to provide direct support for investment in the railway for schemes which, although not earning an adequate financial return, provide a satisfactory cost-benefit return when wider benefits are taken into account. The benefits of investment, as well as the costs, for franchisees will of course differ from case to case.
Mr. Robert AinsworthTo ask the Secretary of State for Transport what assessment he has made of the effect of his privatisation proposals for British Rail on exploitation of the opportunities to improve the north-south rail service in the Coventry travel-to-work area and Coventry station.
§ Mr. FreemanI expect the introduction of franchising to enable private sector operators to respond more flexibly to customer need.
Mr. Robert AinsworthTo ask the Secretary of State for Transport if he will make it his policy to ensure that the financial regime governing the post-privatisation rail service will require local service and local economic factors to be taken into consideration in investment decisions.
§ Mr. FreemanPrivatisation will help the railways to give passenger and freight customers the services they expect. The Government have made clear that they fully recognise the social and other benefits of regional and commuter passenger services and are committed to providing continuing subsidy to support them.