HC Deb 23 April 2002 vol 384 cc173-4W
15. Chris Grayling

To ask the Secretary of State for Transport, Local Government and the Regions what guarantees he is providing for loan finance raised by Network Rail; and what discussions he has had with the European Commission about support for the company. [49408]

Mr. Spellar

The Network Rail bid, if successful, would involve a subordinated standby credit facility from the SRA.

This would enable Network Rail to raise the bridging finance required to release Railtrack from administration as soon as possible; and provide a longer term, last resort, loan facility.

The process of explaining the possible financial arrangements to the commission has now started with a view to obtaining any necessary state aid clearances.