HL Deb 13 July 1993 vol 548 cc7-8WA
Lord Brougham and Vaux

asked Her Majesty's Government:

What steps they are taking to establish the scope for a joint venture with the private sector to renew the infrastructure of the West Coast main line.

The Earl of Caithness

We have today appointed Hambros Bank Ltd to advise on the scope for such a joint venture. The study marks a new departure in our efforts to involve private finance in railway projects. Up to now we have invited the private sector to come forward with proposals which have then been considered on their merits. With this study the Department of Transport is taking the initiative. Hambros have been given a remit to develop an outline proposal or proposals which will be attractive to the private sector and fall within our published guidelines for joint ventures. These mean that control of the venture will rest with the private sector, who will also be expected to take on genuine risk in return for an appropriate share of revenues. Consortia will be invited to bid for the role of joint partner on these terms.

We are determined to pave the way for private sector funding on railway projects. Equipment on the West Coast main line is reaching the end of its economic life. We are hopeful that private sector funding will enable us to bring forward modernisation of one of the premier railway routes in the country.