§ Ms WalleyTo ask the Secretary of State for Transport what consideration he has given to reviewing the rules governing the economic assessment of alternative transport options, including rates of return on investment; and if he will make a statement.
§ Mr. FreemanMy Department's publication "The Role of Investment Appraisal in Road and Rail Transport"—a copy of which is in the Library—sets out the technical procedures used or required by the Department for appraising proposed investment in road and rail transport.
The procedures for evaluating transport investment proposals are kept under constant review, one of many considerations being that of consistency between modes. The same rate of return of 8 per cent. in real terms is used for appraising all public sector investment in transport.