§ Mr. Simon CoombsTo ask the Secretary of State for Transport what external financing limits have been set for British Rail and Railtrack for 1995–96; and what estimates he has made for Government grant support to passenger services for 1995–96.
§ Mr. WattsThe British Rail and Railtrack EFLs have been set respectively at contributions of £817 million and £128 million. These contributions are based on an estimate of grant support, comprising franchising director and metropolitan railway grants, of £1,800 million for 1995–96. This estimate of grant includes metropolitan railway grant paid by the Scottish Office to Strathclyde regional council. These external finance contributions and the estimated level of grant support are consistent with the combined external finance limits for BR/Railtrack and European passenger services/Union Railways announced in the Budget statement last November, after allowing for a transfer of –15 million from EPS to Railtrack for investment to be carried out by Railtrack on behalf of EPS. Any adjustments to these figures will be notified to Parliament.
§ Mr. Simon CoombsTo ask the Secretary of State for Transport what external financing limit has been set for the railway industry in 1994–95.
§ Mr. WattsThe railway industry external finance limit (EFL) for 1994–95 is currently £496 million, as previously announced in reply to the hon. Member for West Derbyshire (Mr. McLoughlin) on 29 November 1994,Official Report column 659. However, the Government have agreed to increase the EFL by up to a further £64 million, if required, to meet certain working capital requirements. If the EFL is increased, the external finance contribution of British Rail, which is currently £272 million, will be reduced by a corresponding amount. Parliament will be notified of any adjustments.
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