§ Mr. ChidgeyTo ask the Secretary of State for Transport by how much the subsidy requirements of the railway franchises which have so far been let fall below the claim made by British Rail for financial support less any administered profit; and if he will list the reductions for each franchise over the next seven years. [35986]
§ Mr. WattsThe table shows the reductions in support for passenger rail services required by private sector franchisees compared with the BR budget, excluding budgeted administered profit. The grant figures for franchisees include costs associated with the substantial additional investment in rail services to which they are committed. Because the BR figures exclude administered profit, this comparison makes no allowance for the additional benefit to the taxpayer of transferring financial risk from the public to the private sector through franchising. Nonetheless, the figures show that, after an initial increase, the net financial burden on the taxpayer will fall by nearly £200 million by the seventh year.
657W
£ million Franchise year BR budget 1 2 3 4 5 6 7 South West Trains 65,940 -4.632 -5.275 -7.561 -12.527 -17.189 -22.340 -25.668 Great Western 45.690 15.185 10.943 6.279 0.409 -5.146 -8.180 -10.456 Inter City East Coast 56.890 9.497 -4.139 -23.157 -42.399 -51.589 -55.092 -56.890 Midland Main Line 10.480 7.001 -3.168 -8.555 -9.696 -11.143 -13.088 -14.888 Gatwick Express -3.930 -0.597 3.930 -3.917 -5.727 -6.551 -7.309 -7.794 Network South Central 93.030 -6.362 -22.449 -43.063 48.138 -51.356 -56.346 -58.388 London, Tilbury Southend 30.670 -1.180 -4.064 -6.673 -8.143 -9.523 -10.819 -12.035 Chiltern 16.470 0.052 -3.474 -4.613 -7.870 -10.896 -12.348 -13.600 Total 315.240 18.964 -27.696 -91.260 -134.091 -163.393 -185.522 -199.719 The BR budget is the latest available. For GW and SWT it is the revised 1995–96, for the others the preliminary 1996–97. Positive numbers indicate price increases, negative numbers price decreases. The BR budget figure for South West Trains and Great Western refers to the final 1995–96 budget, since these two franchises began operations during the financial year 1995–96. The remaining BR budget figures refer to the preliminary 1996–97 budget, which is still subject to negotiation between the BR Board and the franchising director.