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Motorway Service Areas

Volume 931: debated on Wednesday 11 May 1977

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asked the Secretary of State for Transport if he will list those organisations benefiting from motorway concessions, together with the amount each paid for the benefit by outlet for each year for the last 10 years or whatever shorter time the concession has been in existance.

It is not our practice to divulge the details of individual contracts with the motorway service area operators. A list of the operators with the service areas they operate and a table showing the total annual receipts of rent for the last 10 years for which figures are yet available are given below:

asked the Secretary of State for Transport how the cost of each concession granted on the motorway is computed; and what method he uses to grant such concession.

Motorway service areas are leased, usually for 50 years, to their operators after competitive tenders for the development of the site. My Department pays the capital cost of the site and of the necessary engineering works on it. The operator pays for the catering buildings and petrol filling stations. Tenders are judged on the scale, layout and appearance of the development proposed and on the rent offered, which is composed in part of a fixed amount and in part of a varying percentage of gross turnover. No tender is accepted unless the expected receipt of rent represents a reasonable return on the Department's capital expenditure.