HC Deb 12 March 2002 vol 381 cc911-3W
Mr. Don Foster

To ask the Secretary of State for Transport, Local Government and the Regions, pursuant to his answer of 25 February 2002,Official Report, column 784W, on Railtrack, what action was taken by his Department in response to the examples of key areas of failure highlighted by the report of the Environment, Transport, and Regional Affairs Committee, 'Rail Investment: Renewal, Maintenance and Development of the National Rail Network'; and for what reason Railtrack was not placed into railway administration until October 2001. [41331]

Mr. Jamieson

The Government's response to the main conclusions and recommendations of the Environment, Transport and Regional Affairs Committee's report was presented to Parliament by my right hon. Friend the Secretary of State on 15 October 2001 (Cm 5283). The Government's response drew the Committee's attention to the reasons behind the placing of Railtrack plc into Railway Administration on 7 October 2001.

Chris Grayling

To ask the Secretary of State for Transport, Local Government and the Regions what the cost has been to the Government of meeting Railtrack plc's operational bills. [41581]

Mr. Jamieson

£1.96 billion.

Chris Grayling

To ask the Secretary of State for Transport, Local Government and the Regions what the cost has been to the Government of advisers involved in Railtrack administration. [41582]

Mr. Jamieson

From 7 October 2001 to the end of February 2002, the cost of advisers working for my Department on the administration of Railtrack and on the process of exiting administration was about £5.6 million.

Chris Grayling

To ask the Secretary of State for Transport, Local Government and the Regions from which organisation he has obtained legal advice about a possible challenge from Railtrack shareholders. [41583]

Mr. Jamieson

The Secretary of State has instructed the Treasury Solicitor to act on his behalf in relation to threatened action from Railtrack shareholders.

Chris Grayling

To ask the Secretary of State for Transport, Local Government and the Regions which companies tendered for the public relations work on Railtrack administration. [41765]

Mr. Jamieson

Finsbury were originally engaged by Schroder Salomon Smith Barney (SSSB) on their own account, to assist them in their work as the Department's banking advisers.

At the end of December 2001, it was decided to extend Finsbury's involvement. They now work direct to the Department. The extension of Finsbury's involvement was by single tender in view of the knowledge and expertise they had accumulated at that stage.

Mr. Redwood

To ask the Secretary of State for Transport, Local Government and the Regions how many rail investment projects of over £5 million have been started by Railtrack in administration since the appointment of the administrator. [41301]

Mr. Spellar

Twenty.

Mr. Redwood

To ask the Secretary of State for Transport, Local Government and the Regions how much money has been(a) granted and (b) lent to Railtrack in administration. [41300]

Mr. Spellar

Railtrack plc has received £162 million of grant and £1.8 billion under the Government loan facility.

Mrs. May

To ask the Secretary of State for Transport, Local Government and the Regions (1) what estimate his Department has made of the cost to Government of underwriting the debt of the successor company to Railtrack in administration; [42806]

(2) what steps the Government will take to ensure that the receiver company to Railtrack in administration has a minimum BBB credit rating. [42811]

Mr. Byers

Bidders for Railtrack will need to put forward their proposals for the financing of the successor company. These proposals will need to demonstrate how bidders will ensure that the successor company will have a sufficiently high investment grade credit rating to raise the necessary finance for its activities in an efficient and cost effective manner. They will also need to set out any proposals for Government support.

Mrs. May

To ask the Secretary of State for Transport, Local Government and the Regions when the data room for Railtrack in administration will be open to bidders. [42626]

Mr. Byers

This is a matter for the Administrator.