§ Mr. LlwydTo ask the Secretary of State for Transport what is his latest estimate of the cost of rail privatisation; if he will breakdown its main components; and if he will make a statement. [8868]
§ Mr. WattsCosts incurred to date by the Department, the Office of Passenger Rail Franchising and the Office of the Rail Regulator are as follows. They include running costs and consultancy costs.
£ million—cash 1991–92 1992–93 1993–94 1994–95 1995–961 DOT 1.0 6.7 213.5 14.2 14.3 OPRAF — — 2.4 16.6 21.3 ORR — — 1.4 9.0 5.8 Total 1.0 6.7 17.3 39.8 41.4 1 Estimated costs to 31 December 1995. 2 Includes £1.5 million contribution by DOT to the costs of setting up OPRAF and ORR prior to formal appointments of the Franchising Director and Rail Regulator. In addition, British Rail and Railtrack have incurred costs linked to privatisation, including expenditure on assets such as computer equipment and associated systems. These are as follows:
BR/Railtrack (£ million—cash) 1991–92 — 1992–93 — 1993–94 92.2 1994–95 131.0 1995–961 72.0 The privatisation process now has considerable momentum and the sales achieved so far will yield proceeds in excess of £2 billion.
§ Ms ShortTo ask the Secretary of State for Transport if franchise agreements for the first three franchised lines specifically preclude the replacement of rail services with bus services. [13971]
§ Mr. WattsThe franchise agreement requires the franchise operator to run railway services; it may not replace these with bus services. Where, in exceptional circumstances, it is unable to operate the specified railway services, the operator is required to take reasonable steps to provide alternatives, which may include bus services.