§ Lord Barnettasked Her Majesty's Government:
Which of the current Treasury Rules for public expenditure would be relevant to a publicly-owned body such as British Rail bidding as a minority partner for a franchise under the proposed privatisation of the railways; and how they define "minority" in this context.
The Minister of State, Department of Transport (The Earl of Caithness)If BR participates in any joint venture as a minority partner, the normal rules for the control of public expenditure would apply. These rules would require the scrutiny of investment proposals, as appropriate, and that any expenditure be consistent with the board's external financing limit. As made clear in the guidance on joint ventures published by the Treasury on 16th March, a minority partner would be a partner whose shareholding would not enable it to exercise effective control over the venture.