To ask the Secretary of State for Transport if she will ensure that revenue from the fine imposed on Network Rail for delays in December 2007 and January 2008 is spent on the rail network. (192715)

This is a matter for the independent Office of Rail Regulation (ORR), whose investigation has concluded that the problems experienced over the new year were part of a continuing breach by Network Rail of its network licence. The ORR is now consulting on its response.

I understand that Network Rail is exploring urgently with passenger and freight operators and user representatives the option of funding a package of customer improvements worth £14 million. If agreement can be reached by the end of the month, the ORR could decide to endorse this rather than imposing its proposed penalty on Network Rail for breaching its licence.