HC Deb 26 November 1996 vol 286 cc159-60W
Mr. Andrew Smith

To ask the Secretary of State for Transport what(a) reorganisation and (b) set-up costs were incurred by (i) British Rail, (ii) Railtrack, (iii) the Office of the Rail Regulator, (iv) the Office of Passenger Rail Franchising and (v) his Department during the privatisation of the railways, broken down to show the costs of (1) consultants and (2) others, for each year since 1993–94. [5758]

Mr. Watts

Details of the costs incurred by the British Railways Board in the privatisation process are a matter for the board itself. However, the board's annual report and accounts show that it incurred costs of £85 million in 1994–95 and £101 million in 1995–96. I understand from the board that it estimates that it will incur further costs of £53 million in 1996–97. Any breakdown of those figures would be for the board to provide.

Details of the costs incurred by Railtrack are, similarly, a matter for the company itself. However, I understand from the company that it incurred costs of £46 million in 1994–95 and £32 million in 1995–96. Again, any breakdown of those figures would be for the company to provide.

The Office of the Rail Regulator and the Office of Passenger Rail Franchising were set up in November 1993, and so have incurred no set-up costs since 1993–94. The annual costs of each office for 1994–95 and 1995–96 were as follows:

£ million cash
1994–95 1995–96
Office of the Rail Regulator
Consultancy costs 2.9 3.0
Other costs 6.1 6.0
Office of Passenger Rail Franchising
Consultancy costs 13.1 27.0
Other costs 3.5 7.4

Details of the costs incurred by my Department are as follows:

£ million cash
1994–95 1995–96
Consultancy costs 11.8 20.9
Other costs 2.2 6.4