HC Deb 22 November 1995 vol 267 cc141-4W
Ms Glenda Jackson

To ask the Secretary of State for Transport what funds he has made available to the Office of Passenger Rail Franchising to implement rail privatisation; and what are his estimates for the financial years 1995–96, 1996–97, 1997–98. [292]

Mr. Watts

The public expenditure plans announced in last year's unified budget allocated provision for the Office of Passenger Rail Franchising to spend £11 million in 1995–96. Provisions was made for the expenditure of £10 million in 1996–97 and in 1997–98.

Ms Jackson

To ask the Secretary of State for Transport what funds he has made available to the Office of the Rail Regulator to implement rail privatisation; and what are his estimates for the financial years 1995–96, 1996–97, 1997–98. [293]

Mr. Watts

My right hon. Friend the Secretary of State announced on 31 October that the Office of the Rail Regulator would have provisions for expenditure of £10 million this year,Official Report, column 131. Provision has been made for the expenditure of £7 million in 1996–97 and in 1997–98.

Ms Jackson

To ask the Secretary of State for Transport what funds his Department has spent, or is estimated to spend, on preparations for rail privatisation, excluding funds made available to(a) British Rail, (b) Railtrack Group Plc, (c) Opraf and (d) the Office of the Rail Regulator in (i) 1994–95, (ii) 1995–96 and (iii) 1996–97. [294]

Mr. Watts

The answers are as follows:

  1. (i) 1992–93: £6.7 million
  2. (ii) 1993–94: £13.5 million
  3. (iii) 1994–95: £14.2 million
  4. (iv) 1995–96: £24.6 million
  5. (iv) 1996–97: £5.3 million

Figures for 1995–96 onwards are current estimates. These exclude main sale costs for the flotation of Railtrack, which are yet to be determined.

Ms Jackson

To ask the Secretary of State for Transport what funds he made available to Railtrack to implement privatisation in 1994–95; and what is his estimate for 1995–96. [291]

Mr. Watts

Railtrack spent £46 million on privatisation-related expenditure in 1994–95. The estimate for 1995–96 is £30 million.

Ms Jackson

To ask the Secretary of State for Transport if he will show for all consultants and other outside organisations or individuals currently or previously employed by his Department for advice or assistance in rail privatisation(a) the name of the consultancy, organisation or individual, (b) the length of the contract offered to each consultancy, organisation or individual, (c) the total amount inclusive of VAT paid to date to each consultancy, organisation or individual and (d) the services required by his Department from each consultancy, organisation or individual; and if he will make a statement. [270]

Mr. Watts

Information about payments to individual contractors is commercially confidential.

Payments made to date to consultants currently or previously employed by the Department total £35.4 million.

Consultants currently employed by the Department on rail privatisation are:

Company Consultancy
Linklaters and Paines Legal advice
Freshfields Legal advice
Samuel Montagu Merchant Banking
Hambros Merchant Banking
SBC Warburg Merchant Banking
Merril Lynch Merchant Banking
KPMG Peat Marwick Accountancy and Taxation
Ernst and Young Accountancy
Price Waterhouse Accountancy
Shandwick Marketing
Gresham Marketing
Dewe Rogerson Marketing
Ernst and Young Information Systems
Richard Ellis Property matters
Sedgwick Insurance
Brodies Advice on Scots law
Travers Morgan Specialist advice on BRIS contract pricing
Ernst and Young Corporate finance advice on BRIS contract pricing

Consultants previously employed by the Department on rail privatisation are:

Company Consultancy
Arthur D. Little Research
Coopers and Lybrand Access and access charging
Mercer Management Freight and franchising
Norman Broadbent Recruitment
Putnham Hayes and Bartlett Access and access charging
Debenham Tewson and Chinnocks Property matters
NERA Regulatory matters
Deloitte Haskins and Sells Industry structure

Contracts for consultancy advice are normally offered on an on-going basis with provision for the Department to terminate the contract.

Ms Jackson

To ask the Secretary of State for Transport what funds he has made available to British Rail for reorganisation in preparation for privatisation. [290]

Mr. Watts

Costs linked to privatisation incurred by British Rail are shown in the table:

£ million cash
1993–94 92.2
1994–95 85.0
1995–96 144.0
Note:
1Estimated costs to 30 September 1995.

Mr. Battle

To ask the Secretary of State for Transport which lines in the West Yorkshire region will be receiving maintenance attention before rail privatisation. [1447]

Mr. Watts

All operational railway lines in West Yorkshire are maintained in accordance with statutory requirements and Railtrack's rigorous safety standards.

Ms Short

To ask the Secretary of State for Transport if he will list each British Rail(a) subsidiary and (b) company formerly part of British Rail which has been privatised indicating the receipts from each sale. [1274]

Mr. Watts

Sales have been completed for the following businesses:

  • Red Star
  • Special Trains Unit
  • BRIS Design Offices
  • DCU Birmingham
  • Mainline Swindon
  • IDG Glasgow
  • BPE Mechanical and Engineering Consultancy, Doncaster.
  • Civil Engineering Design Group, York.
  • BR Maintenance Ltd.
  • Swindon Electronic Service Centre
  • Chart Leacon Depot
  • Ilford Depot
  • Doncaster Depot
  • Wolverton Depot
  • Springburn Depot
  • Eastleigh Depot
  • OBS Services Ltd.
  • Meldon Quarry Ltd.
  • Baileyfield Switches and Crossings Works
  • Ditton Timber Treatment Works
  • Quality and Safety Services Ltd.
  • BR QAS Ltd.

Gross proceeds to date from these sales amount to nearly £47 million. Details of individual sales completed by BR will be made public in due course, but it would be contrary to the commercial interests of British Rail and the Government to publish those details at this stage, as they may prejudice sales still in progress. In addition to proceeds from sales by BR, proceeds of approximately £1.8 billion are expected from the sales of the rolling stock leasing companies, following the signing of sale and purchase agreements announced on 9 November.

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