§ Mrs. DunwoodyTo ask the Secretary of State for Transport what measures his Department took to write off the debts of Railtrack; and if he will indicate the amounts involved. [18679]
§ Mr. Watts[holding answer 4 March 1997]: The outstanding capital debt of Railtrack owed to the national loans fund, amounting to £1,229 million, was extinguished by the Railways Act 1993 (Extinguishment of Loans) (Railtrack plc) Order 1996 on 29 March 1996. On that day, £585 million of new debt owed to HM Treasury was created. Part of the £585 million was repaid immediately; the remainder was sold on as bonds in July 1996, after Railtrack was privatised. The company's capital structure was determined with the objective of maximising the overall value of the flotation.