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Railway Privatisation

Volume 264: debated on Monday 23 October 1995

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To ask the Secretary of State for Transport if he will make a statement about railway privatisation. [36477]

The programme has irresistible momentum. Over 40 per cent. by revenue of passenger rail services are out to tender and the first three franchises—Great Western, LTS Rail and South West Trains—are due to be awarded at the end of the year. Railtrack will be floated in spring 1996. Businesses with a combined turnover of some £270 million have already been sold. Further, businesses with a combined turnover of nearly £3 billion are already on the market.

To ask the Secretary of State for Transport what is the estimated cost to date of rail privatisation. [37914]

Costs incurred to date by the Department, the Office of Passenger Rail Franchising and the Office of the Rail Regulator are as follows. They include running costs and consultancy costs.

£ million
1 Estimated costs to 30 September 1995.
2 Includes £1.5 million contribution by DOT to the costs of setting up OPRAF and ORR prior to formal appointments of the Franchising Director and Railway Regulator.
In addition, British Rail and Railtrack have incurred costs linked to privatisation. These are shown below:

£ million
1 Estimated costs to 30 September 1995.