§ Tom BrakeTo ask the Secretary of State for Transport, Local Government and the Regions what research his Department has conducted into the impact a not-for-profit Railtrack will have on rail safety, reliability, ability to raise funds for investment purposes, and its own public acceptability. [9892]
§ Mr. JamiesonOur proposed company limited by guarantee (CLG) would be able to make an operating surplus, which would be re-invested in establishing reserves and in developing the network. Our proposals are now being developed and we will work to ensure that the CLG would be able to raise funds for investment and have a positive impact on rail safety and reliability.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions what assessment he made of the financial position of Railtrack before deciding to apply for an administration order. [9833]
§ Mr. SpellarI refer the hon. Member to the reply given today by the Under-Secretary, my hon. Friend the Member for Plymouth, Devonport (Mr. Jamieson) to the hon. Member for Fareham (Mr. Hoban),Official Report, column 572W, and to his answer of 23 October 2001, Official Report, column 195W.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions what meetings he held with officials from the IPPR to discuss their model for a not-for-profit trust prior to his decision to take Railtrack into administration. [9835]
§ Mr. SpellarI refer the hon. Member to the reply given by the Under-Secretary, my hon. Friend the Member for Plymouth, Devonport (Mr. Jamieson) to the hon. Member for Fareham (Mr. Hoban) on 18 October 2001,Official Report, column 1319W.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions if the Safety and Standards Directorate of Railtrack will be transferred to the new railway industry safety body. [9824]
§ Mr. SpellarOn 1 January this year the industry-wide functions of Railtrack's Safety and Standards Directorate were incorporated into a separate, non-profit making company, within the Railtrack Group—Railway Safety.570W Lord Cullen has recommended that most of the functions carried out by Railway Safety should be undertaken by the new Rail Industry Safety Body.
We shall publish in this parliamentary Session our plans to take forward Lord Cullen's recommendation to establish a fully independent industry safety body.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions if he has received confirmation from the European Commission that his plans for Railtrack are compatible with European law. [9829]
§ Mr. SpellarThe Secretary of State will ensure that any proposals for restructuring the railway industry are compatible with European law.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions if Railtrack's administrators will be permitted to dispose of non-operational assets and return the proceeds of any such disposals to Railtrack's shareholders. [9828]
§ Mr. SpellarThe administrator is required to manage the transfer, as a going concern, of as much of Railtrack plc's undertaking as it is necessary to transfer in order to ensure that the relevant activities may be properly carried on. The administrator's proposed transfer scheme must then be passed to my right hon. Friend the Secretary of State for consideration and approval. It is then for the administrator to determine whether any residual value can be distributed, and on what basis.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions what information was given by his officials to Railtrack executives in their meeting on 3 October about his intentions to take Railtrack into administration. [9840]
§ Mr. SpellarNone. My right hon. Friend the Secretary of State took the decision to refuse Railtrack's proposal for additional funding on 5 October.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions if he will place in the Library(a) a copy of written statements from Railtrack substantiating its requests for extra subsidy and (b) an analysis of the decisions of the Regulator on such funds. [9837]
§ Mr. SpellarDocuments provided to my Department by Railtrack relating to the company's requests for extra funding remain commercially confidential. These documents have not been analysed by the Rail Regulator.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions when and how he informed the Strategic Rail Authority of his decision(a) to put Railtrack into railway administration and (b) to replace it with a Government-owned non profit-making company. [9830]
§ Mr. SpellarMy officials informed the Strategic Rail Authority (SRA) on 6 October.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions what representations he has received from City firms about future private investment in the national railway network since 11 September. [9858]
571W
§ Mr. SpellarMy officials and my Department's advisers have had a number of contacts with financial institutions since Railtrack plc was placed into administration.
§ Mr. PicklesTo ask the Secretary of State for Transport, Local Government and the Regions, if he will provide Railtrack plc with sufficient funds to complete the modernisation of train protection systems. [9827]
§ Mr. SpellarI refer the hon. Member to the Deputy Prime Minister's statements to the House on 20 July 2000,Official Report, column 549, and 24 October 2000, Official Report, column 136.
§ Mr. LilleyTo ask the Secretary of State for Transport, Local Government and the Regions how much private money was invested in equity share issues by Railtrack; what is the cumulative value of dividends paid out on that equity; and if he will estimate the cumulative interest payable on the same amount of gilt edged stock. [10147]
§ Mr. SpellarThe flotation of Railtrack Group Plc on 20 May 1996 raised gross proceeds of f1.93 billion from equity investors.
Since 20 May 1996, Railtrack Group Plc have paid out £709 million in cash, or equivalent, dividends.
The amount of interest payable on gilt edged stock is dependent on the coupon and maturity of the stock that is bought.
§ Miss McIntoshTo ask the Secretary of State for Transport, Local Government and the Regions what recent meetings he has had with the Strategic Rail Authority to discuss recent developments affecting Railtrack. [10173]
§ Mr. JamiesonMy officials are in regular contact with the Strategic Rail Authority.
§ Miss McIntoshTo ask the Secretary of State for Transport, Local Government and the Regions under the new arrangements proposed for Railtrack and the railway sector, to what extent(a) train operating companies and (b) Railtrack would have responsibility for safety. [10174]
§ Mr. JamiesonThe successor company to Railtrack plc would need to meet the same safety requirements as its predecessor. Train operating companies' safety responsibility would not be affected.
§ Miss McIntoshTo ask the Secretary of State for Transport, Local Government and the Regions what assessment he has made of the implications for the planned improvements to the east coast main line of the decision to put Railtrack into administration. [10172]
§ Mr. JamiesonThe decision to put Railtrack into administration will have no immediate implications for the planned improvements to the east coast main line (ECML). The development studies for the ECML upgrade are being jointly carried out and funded by the Strategic Rail Authority and Railtrack. This will continue unchanged until the end of this financial year. The review of the upgrade objectives is a continuous process as part of the project's development. Decisions on planned improvements will be subject to the outcome of these reviews regardless of whether or not Railtrack is in administration.
572W
§ Mr. Andrew TurnerTo ask the Secretary of State for Transport, Local Government and the Regions what plans he has to compensate Railtrack employees holding shares in Railtrack plc. [9906]
§ Mr. Jamieson[holding answer 24 October 2001]: The Government will do their utmost to ensure shareholders get fair value for money but they will not use additional taxpayers' money to create value.
As my right hon. Friend made clear in his statement on 15 October, no further taxpayers' money will be put into Railtrack to compensate shareholders.
§ Mr. HobanTo ask the Secretary of State for Transport, Local Government and the Regions if he will place in the Library the calculation supporting the statement he made on 15 October that Railtrack would be in deficit by £700 million by 8 December this year and £1.7 billion by the end of March next year. [10195]
§ Mr. Jamieson[holding answer 25 October 2001]: The figures are those stated in the report at Exhibit "DR3" in the bundle of High Court papers, copies of which have already been placed in the Libraries of the House.
§ Mr. RedwoodTo ask the Secretary of State for Transport, Local Government and the Regions what his estimate is of the cash needs of Railtrack plc(a) between now and its next year-end and (b) for the following year; and how much of this will be supplied by the Treasury. [9780]
§ Mr. Spellar[holding answer 23 October 2001]: The Government have committed to provide the Railway Administrators with the financial support necessary to ensure that the rail network can remain fully operational throughout the administration of Railtrack Plc. The Administrators, who are currently undertaking a thorough review of Railtrack's business and cost base, will determine the overall case needs of Railtrack Plc during this period.
In respect of the funding arrangements, I refer the right hon. Member to the answer given by my right hon. Friend the Secretary of State to my hon. Friend the Member for Scarborough and Whitby (Lawrie Quinn) on 17 October 2001, Official Report, column 1230W.