HC Deb 30 October 2002 vol 391 c859W
Mr. Don Foster

To ask the Secretary of State for Transport (1) what recent discussions have taken place between his Department, the Strategic Rail Authority and the Treasury into the role of bonds as a financing mechanism within the railways; and if he will place copies of related correspondence in the Library; [76474]

(2) what research has been conducted by and for (a) his Department and (b) the Strategic Rail Authority into the role of bonds as a financing mechanism within the railways; and if he will place copies in the Library. [76195]

(3) what representations have been received by (a) his Department and (b) the Strategic Rail Authority on the role of bonds as a financing mechanism within the railways; and if he will place copies in the Library. [76206]

Mr. Jamieson

The Department has not commissioned any research on the issue of bond financing of railways. It has received a number of representations on rail finances, some of which touch on matters relating to bond financing. The Department would generally expect to seek advice as necessary on such issues from the Strategic Rail Authority (SRA).

The SRA is itself now considering a number of options for the future financing of the rail industry. However, no firm proposals involving such options have been put to the Department or the Treasury.

For completeness, as my right hon. Friend the Secretary of State made clear to the House on 27 June 2002, Official Report, column 976, Network Rail plans to replace its short term bridge finance through longer-term loans securitised against its future income.

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