§ Mrs. DunwoodyTo ask the Secretary of State for Transport (1) what estimates were given to him by British Rail for the costs of reorganisation for rail privatisation in(a) the current financial year and (b) the forthcoming financial year;
(2) if he will list the percentage of public funding to British Rail that has been used for restructuring of British Rail in preparation for privatisation in (a) 1992–93 and (b) 1993–94; what is his estimate for 1994–95; and if he will make a statement;
(3) what funds he has made available to British Rail for reorganisation in preparation for privatisation;
(4) what funds he has made available to Railtrack to implement privatisation in 1993–94; and what is his estimate for 1994–95.
§ Mr. FreemanThese costs are primarily a matter for British Rail and, after April, Railtrack. In 1992–93 British100W Rail reported that around £10 million was spent on reorganisation. In 1993–94, we understand that British Rail expects to spend around £56 million. In 1994–95 British Rail and Railtrack have estimated that they will require an additional £50 million for running costs and up to £30 million for expenditure on new equipment and systems in support of reorganisation.
Reorganisation costs will facilitate the biggest railway reorganisation for half a century that will bring substantial benefits to the travelling public. Reorganisation costs in 1992–93 represented around 0.5 per cent. of public funding to British Rail; the comparable percentages in 1993–94 and 1994–95 are estimated to be 3.7 and 6.5 per cent. respectively.
Additional funds to meet the full costs of reorganisation have been provided within the public expenditure provision for the railway industry was set out in the transport report published on 10 March.