HC Deb 22 May 1997 vol 294 cc158-9W
Mrs. Dunwoody

To ask the Secretary of State for the Environment, Transport and the Regions what action he proposes to take to ensure that Railtrack fulfils its contractual obligations to maintain(a) the infrastructure and (b) track and signalling. [64]

Ms Glenda Jackson

Under its contracts with train operators Railtrack is penalised for delays to services caused by faults in the infrastructure and signalling and thereby encouraged to invest in necessary maintenance. This is one of the areas we are considering as part of our review of regulation of the rail industry.

Mrs. Dunwoody

To ask the Secretary of State for the Environment, Transport and the Regions (1) if he will list the amount which Railtrack is contractually obliged to spend on track and signalling upkeep and maintenance; [66]

(2) what powers he has to force Railtrack to commit funds towards maintenance and upkeep of track and signalling if it falls below the contractual obligations set by the regulator. [67]

Ms Jackson

The Secretary of State has no powers to force Railtrack to commit funds. The Rail Regulator, in setting the level of charges payable by train operators, has assumed that Railtrack will spend £3.5 billion at 1995/96 prices on network renewal in the six years to 2001. Railtrack does not have a contractual obligation to spend this amount on maintenance but a failure to spend at the levels assumed by the Regulator would be taken into account when he reviews access charges in 2001.

The Rail Regulator has today called for greater public accountability from Railtrack and announced that he will be seeking agreement to an amendment to Railtrack's licence to ensure delivery of its investment plans. This exposes the weakness in the present system. We will be conducting a thorough review of rail regulation.