HC Deb 23 April 2002 vol 384 cc187-8W
Chris Grayling

To ask the Secretary of State for Transport, Local Government and the Regions (I) what assessment he has made of the implications of paragraph 24. section 3.1 of the Community guidelines on state aid for rescuing and restructuring firms in difficulty (1999/c 288/02) for the timing of state aid to Railtrack in administration; [50769]

(2) if he will make a statement on the implications of paragraph 48 of the Community guidelines on state aid for rescuing and restructuring firms in difficulty (1999/c 288/02) as it relates to the Government's ability to extend state aid for Railtrack in administration beyond 7 October; [50773]

(3) if he will make a statement on section 3.1, paragraph 23, subsections b and d of the Community guidelines on state aid for rescuing and restructuring firms in difficulty (1999/c 288/02) as it relates to Railtrack in administration; [50768]

(4) what assessment his Department made of the implications of paragraph 24, section 3.1 of the Community guidelines on state aid for rescuing and restructuring firms in difficulty (1999/c 288/02) before it took the decision to provide financial support for the Network Rail bid for Railtrack; [50770]

(5) if the stipulation in paragraph 51 of the Community guidelines on state aid for rescuing and restructuring firms in difficulty (1999/c 288/02) prevents Network Rail from receiving state aid to purchase the assets of Railtrack in administration. [50774]

Mr. Jamieson

[holding answer 18 April 2002]: The Secretary of State has had full regard to the implications of the Community guidelines on state aid for rescuing and restructuring firms in difficulty as it relates to Railtrack in administration and any financial support to be provided to Network Rail if its bid for Railtrack plc is successful. The Government's guarantee of commercial borrowing by Railtrack plc is consistent with section 3.1, paragraph 23, subsections b and d of the Guidelines.

Rescue aid under these guidelines can be extended beyond the initial period of six months in duly substantiated exceptional circumstances (paragraph 24). If the administration of Railtrack plc is likely to continue beyond 30 September 2002 clearance for an extended period of aid would be sought from the European Commission, either as an extension of the existing clearance or as a separate notification if more appropriate.

If the Network Rail bid were to be successful in accordance with the timetable as currently projected the Government guaranteed loans to Railtrack plc (in administration) would be reimbursed in full before 30 September. Any state aid granted to Network Rail would be notified separately. The Government will ensure that any aid provided to Network Rail is compatible with the provisions of the EC treaty in particular Article 73 and Article 86(2).