HC Deb 19 January 1994 vol 235 cc591-2W
Mr. Jacques Arnold

To ask the Secretary of State for Transport whether surplus BR freight assets will be made available to companies wishing to operate their own rail freight services.

Mr. Freeman

British Rail's freight businesses will need to retain sufficient assets to enable them to operate safely, effectively and economically and to discharge their obligations to customers.

However, where assets are identified as surplus to operational requirements, these will be offered for sale by British Rail on a competitive basis. Companies or individuals interested in purchasing such assets should register their interest with British Rail's vendor unit.

Mr. Bayley

To ask the Secretary of State for Transport (1) how much money his Department has set aside in its 1994–95 budget for making freight facilities grants under the Railways Act 1993; how much of this sum has been allocated to date; and who has been told to date that they will receive such grants;

(2) how much section 8 grant was paid to encourage the transport of freight by rail in 1990–91, 1991–92 and 1992–93; how much it is estimated will be paid in 1993–94; and how much is budgeted for such grants in 1994–95.

Mr. Freeman

Expenditure on freight facilities grants under both section 8 of the Railways Act 1974 and section 36 of the Transport Act 1981 has been as follows:

Year £ million
1990–91 3.500
1991–92 1.239
1992–93 1.718

As grant can be claimed only on receipted invoices submitted during the construction of the rail or inland waterway facilities, it is too early to estimate how much will be expended in 1993–94.

Under the Railways Act 1993 both the existing rail and inland waterway freight facilities grants will be considerably enhanced and a new track access grant for freight service operators introduced. All three measures will be effective from the commencement of the new fiscal year on 1 April 1994 and administered from a single budget which, in 1994–95, has been set at £13.3 million with a present estimate of £43 million over three years. As formal applications cannot be considered until after this date it is too early for my Department to award any grants under the new provisions and I am not in a position to say how the funds will be taken up. Any commitments falling in 1994–95 as a result of previous awards under section 8 of the 1974 act would be met from the new single budget but the amount due will be determined largely by the timing of claims.