§ Mr. Gordon PrenticeTo ask the Secretary of State for Transport, Local Government and the Regions how much British Railways' debt was extinguished by the Government in the six months before rail privatisation. [34279]
§ Mr. SpellarOn 29 March 1996 £1,229 million of debt owed by Railtrack to the National Loans Fund was cancelled and on 30 March 1996 Railtrack's obligations in respect of a further £230 million owed to the Passenger Transport Executives (PTEs) were transferred to DoA Ltd., a company wholly owned by the Secretary of State for Transport. Also, on 29 March 1996 Railtrack issued debentures acknowledging indebtedness to HM Government of £589 million. With the exception of a £4 million repayment of debt, these debentures were subsequently sold by HM Government in the bond markets.