§ Mr. AdleyTo ask the Secretary of State for Transport if he will guarantee continuing levels of subsidy to prospective private sector railway franchisees for the full length of their franchise.
§ Mr. Freeman[holding answer 9 February 1993]: It will be for the franchising director to negotiate contracts with private sector franchisees, and to make any subsidy payments necessary under them from within his budget. In doing so he will be in no different a position to any other public sector body in entering into contracts which run beyond the normal three-year public expenditure planning cycle.
§ Mr. AdleyTo ask the Secretary of State for Transport what limit he will place on the amount of subsidy to be 773W offered to prospective rail freight operators under the arrangements announced by the Government for the next 15 years; and what estimate he has made of the total amount to be guaranteed.
§ Mr. Freeman[holding answer 9 February 1993]: The Government have not set a specific time limit on the new scheme—we have said that it will be reviewed after a period of operation. The amount of funds available will depend on the level of demand for the scheme, objective assessment of its benefits, and competing demands for public expenditure.