§ Mrs. DunwoodyTo ask the Secretary of State for the Environment, Transport and the Regions how much he estimates will be contributed to public funds from the sale of the moth-balled Eurostar rolling stock to Canada; what talks have been held with the leasing companies about such sales; and what has been the total cost to public funds, including compensation paid, of the provision of rolling stock meant for services north of London. [143708]
§ Mr. Hill[holding answer 21 December 2000]: Under the terms of the agreement with the manufacturers of the European Night Services (ENS) rolling stock, the ENS shareholders were to receive a share in any sale proceeds if the price paid for the rolling stock was above a certain level. Unfortunately I understand from Eurostar (UK) Ltd. that the proceeds of this sale were not above that threshold and that there will therefore he no contribution from the sale.
374WThe Government have held no talks with leasing companies since the original agreement was reached in 1998.
The rolling stock meant for services north of London includes both the sleeper carriages for European Night Services and the Regional Eurostar rolling stock. The Government incurred a cost of £109 million when the leases for the rolling stock were terminated and the Government guarantee was called.
The Regional Eurostar sets originally cost £180 million. The Government consented to a sale and leaseback arrangement in 1998 to ease Eurostar' s cash flow problems and Eurostar has subsequently arranged a further leasing arrangement on two of the Regional Eurostar sets to allow their use on the east coast main line. The details of this arrangement are a commercial matter between the two parties involved.