HC Deb 20 June 2002 vol 387 cc512-3W
Mrs. May

To ask the Secretary of State for Transport (1) on what date he applied for state aid approval for the payment of £300 million to Network Rail to provide compensation for shareholders of Rail Track Group; [61269]

(2) when he applied to the European Commission for state aid approval in relation to the underwriting of funding for Network Rail; and if he will make a statement. [61268]

Mr. Spellar

The financial support package which the Government have agreed to make available to Network Rail if it is successful in acquiring Railtrack plc was notified to the European Commission on 31 May 2002. That includes the £300 million which is being made available to Network Rail in recognition of the benefits which would be delivered by an early end to Railtrack's administration.

Mr. Redwood

To ask the Secretary of State for Transport whether there is an agreed work programme of track renewal for the first year of Network Rail's trading. [61298]

Mr. Spellar

Any bidder to succeed Railtrack as the rail network operator—including Network Rail—would need to have in place a programme of track renewal to enable it to fulfil its licence condition, to maintain the rail network, in accordance with best practice and in a timely, economic and efficient manner.

Mr. Redwood

To ask the Secretary of State for Transport (1) how much money he estimates will be raised from(a) Government and (b) private sector sources to finance Network Rail; [61251]

(2) how much money he estimates the SRA will need in (a) 2002–03 and (b) 2003–04 to finance Network Rail; [61253]

(3) what adjustments to the forecasts for transport spending under the 10-year plan he is proposing to accommodate the financing of Network Rail; [61300]

(4) what his estimate is of the expenditure needed in the next three years to bring the rail network up to acceptable standard; [61252]

(5) whether the additional grant and guarantees needed by Network Rail compared with the plans for Railtrack in the 10-year plan represent additional public funding above the 10-year plan levels. [61299]

Mr. Spellar

Network Rail will have improved management focus, lower financing costs and no dividends to pay. Negotiations are continuing with Network Rail over its support requirements. The Government expect that any support offered to Network Rail could be found within the 10-year transport plan funding levels.

Mr. Redwood

To ask the Secretary of State for Transport (I) whether the Government stand behind any guarantees offered by the SRA on behalf of Network Rail; [61279]

(2) how much capital Network Rail will have on its balance sheet on its first day of trading after the transfer to it of Railtrack assets. [61280]

Mr. Spellar

Negotiations between Network Rail and Railtrack Group plc are continuing on a commercial confidential basis.

Mr. Redwood

To ask the Secretary of State for Transport what guarantees about the state of the rail network(a) the Government and (b) the SRA will offer to Network Rail. [61297]

Mr. Spellar

I refer the right hon. Member to the answer I gave him on 10 June 2002,Official Report, column 777W.