HC Deb 21 March 2002 vol 382 cc486-8W
Mrs. May

To ask the Secretary of State for Transport, Local Government and the Regions what the public sector administration cost associated with the rail sector was in each of the last five years. [44988]

Mr. Byers

The table shows the gross administration costs of the railways related public sector bodies and the total staff costs of the British Railways Board (BRB) over each of the last five years.

On 1 February 2001 the SRA legally assumed all the functions of OPRAF, most of the residual functions of the BRB and some functions of the DTLR railways directorate and of the ORR. The SRA administration figure includes staff costs for the British Transport Police that were previously paid by the BRB and for the Rail Passenger Councils that were previously paid by the ORR.

Bidders need to put forward their proposals on structure and funding to him.

Mrs. May

To ask the Secretary of State for Transport, Local Government and the Regions (1) what powers Railtrack plc has while in administration, to be involved in any bid for another company, or part of another company; [44207]

(2) while it remains in administration, under what powers money could be provided to Railtrack plc by (a) the Secretary of State, (b) the Office of the Rail Regulator, (c) the Strategic Rail Authority or (d) other financier, for the purchase of another company or part of another company including Global Crossing UK. [44208]

Mr. Byers

Copies of the loan agreement were placed in the House Library on 17 October 2001. The loan provides sufficient funding to continue on a 'business as usual' basis during the administration period, before the loan is replaced through commercial debt. Under the terms of the loan agreement, Railtrack plc cannot enter into any contract or obligation requiring expenditure or the undertaking of a liability in excess of £10 million without my prior written consent.

The Rail Regulator has no power to provide funding to Railtrack plc for the purchase of assets outside of the regulatory framework.

Section 211 of the Transport Act 2000 provides powers for the Strategic Rail Authority to provide financial assistance to secure the provision of railways services or assets. This function must only be exercised in the manner outlined in section 207 of the Act.

Finance raised through other sources is a matter for the administrator.

Mr. Wiggin

To ask the Secretary of State for Transport, Local Government and the Regions what steps he is taking to ensure that companies bidding for Railtrack pay equal bid costs. [44801]

Mr. Jamieson

This is a matter for the respective bidders.

Mr. Wiggin

To ask the Secretary of State for Transport, Local Government and the Regions how he will ensure that Ernst and Young obtain the best deal for Railtrack shareholders. [44799]

Mr. Jamieson

This is a matter for the administrator.

Mr. Wiggin

To ask the Secretary of State for Transport, Local Government and the Regions what steps he is taking to ensure that private companies have an equal opportunity to bid for Railtrack. [44798]

Mr. Jamieson

The bidding process is a matter for the administrator. For its part, the Government have taken steps to ensure both that all potential bidders are aware of the principal issues my right hon. Friend the Secretary of State would consider in exercising his powers in respect of any transfer scheme proposed by the administrator and that the bid based on the concept of a company limited by guarantee is not unfairly advantaged in terms of access to information from Government.

Details were given in my right hon. Friend the Secretary of State's reply to my hon. Friend the Member for Gedlin (Mr. Coaker) on 31 October 2001, Official Report, columns 669–71W and in my reply to the hon. Member for Epsom and Ewell (Mr. Grayling) on 25 February 2002, Official Report, columns 790–91W.

Mr. Wiggin

To ask the Secretary of State for Transport, Local Government and the Regions who is paying the bidding costs of the company limited by guarantee for Railtrack. [44800]

Mr. Jamieson

I refer the hon. Member to the reply given by my right hon. Friend the Minister for Transport to the hon. Member for Epsom and Ewell (Mr. Grayling) on 12 February 2002,Official Report, column 214W.