HL Deb 20 January 1998 vol 584 cc238-9WA
Lord Berkeley

asked Her Majesty's Government:

Whether the Audit Commission intends to investigate:

  1. (a) the sale of Railfreight Distribution to EW&S Railway, and
  2. (b) the granting of an extension to Eurotunnel's concession. [HL78]

Baroness Hayman

Studies of such issues would fall to the National Audit Office rather than the Audit Commission. They would be a matter for the Comptroller and Auditor General.

Lord Berkeley

asked Her Majesty's Government:

What arrangements they have made within the recently concluded agreements for the sale of Railfreight Distribution and the extension to Eurotunnel's concession to ensure the provision of open access, and whether these arrangements comply with EC Directive 91/440. [HL76]

Baroness Hayman

In approving the sale of Railfreight Distribution last November, the European Commission found that the sale terms did not unduly distort competition. Since then, in return for agreeing to an extension to Eurotunnel's concession, we have agreed with the French Government and Eurotunnel measures designed to increase international rail freight through the Channel Tunnel and beyond, not only by Railfreight Distribution but also by potential new entrants to the market. We believe these arrangements comply fully with EC Directive 91/440.

Lord Berkeley

asked Her Majesty's Government:

What measures to increase rail freight through the Channel Tunnel they have secured from Eurotunnel in return for agreeing to an extension to Eurotunnel's concession, and what is the status of negotiations of each measure. [HL75]

Baroness Hayman

Eurotunnel have agreed a basis for charging new operators who wish to run rail freight services through the Channel Tunnel, details of which are commercially confidential. This will form part of an agreement between the UK and French Governments and Eurotunnel which the parties expect to sign shortly. Eurotunnel have also given the existing British operator, Railfreight Distribution, important assurances about the long term future of Channel Tunnel rail freight.

Lord Berkeley

asked Her Majesty's Government:

What are the amount and timing of commitment or payment of public sector funds in connection with the sale of Rail Freight Distribution to EW & S Railway for:

  1. (a) payment for use of the Channel Tunnel;
  2. (b) payment for company restructuring; and
  3. (c) any other purpose. [HL77]

Baroness Hayman

The net present value (NPV) of the total cost of the sale to the British Railways Board is estimated at about £242 million. This includes payments to Eurotunnel until April 2005 for use of the Channel Tunnel of up to £168 million (NPV), to which BRB is in any case contractually committed; restructuring grant, payable over two years from the date of sale completion, of up to £23 million; and transitional grant of up to £33 million to cover losses over the first two years.