HC Deb 19 November 2001 vol 375 cc30-1W
Mr. Pickles

To ask the Secretary of State for Transport, Local Government and the Regions what contingency plans he made to provide extra resources to Railtrack prior to 5 October. [13213]

Mr. Spellar

My right hon. Friend the Secretary of State gave due consideration to the option of providing extra resources to Railtrack—through their Project Rainbow proposals—when making his decision on 5 October. Consideration was given to the legislation that would be required to enable Railtrack's request for a suspension of the existing Regulatory regime.

Mr. Hoban

To ask the Secretary of State for Transport, Local Government and the Regions what his estimate is of the revenue that could have been raised from brought-forward payment of track access charges if the Rail Regulator had held an interim financial review on 5 October. [14782]

Mr. Jamieson

[holding answer 14 November 2001): This would have been a matter for the independent Rail Regulator. The regulator did indicate to Railtrack his willingness to consider an interim review but Railtrack did not apply for one.

Mr. Rosindell

To ask the Secretary of State for Transport, Local Government and the Regions what discussions he had with the European Commission prior to his decision on placing Railtrack in administration. [15045]

Mr. Jamieson

Neither my right hon. Friend nor my officials had any discussions with the European Commission dealing with the matters which formed the basis for my right hon. Friend's decision to petition for a court order placing Railtrack plc into administration prior to that decision. On Monday 8 October 2001, my officials informed the European Commission that Railtrack plc had been placed into administration.

Mrs. May

To ask the Secretary of State for Transport, Local Government and the Regions, pursuant to his answer of 14 November 2001, reference 14783, on what basis his Department determined the value of assets of Railtrack plc for the purposes of assessing the company's solvency. [16092]

Mr. Byers

Under general accounting practice, the solvency of Railtrack plc was assessed on its ability to meet its debt liability payments. Railtrack plc was taken into Railway Administration on 7 October because it was, or was likely to become, unable to pay its debts. The evidence presented to the High Court showed that there would be a deficit of £700 million by 8 December this year, rising to £1.7 billion by the end of March next year. Railtrack plc attended the High Court but did not oppose the petition to place the Company in railway administration.

The administrator will be seeking to obtain the best value he can for the assets in Railtrack plc.

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