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Sir George Young: As I know that the hon. Gentleman wants to welcome that, I shall give way.
Mr. Banks: Which other country in Europe is pursuing such a model of rail privatisation? If it is so wonderful, why is everyone not leaping in to embrace it?
Sir George Young: Five or six European countries have done the same as us and have separated the provision of infrastructure from the provision of services--a policy recommended in one of the European Commission's directives.
Sir George Young: It is important to separate the provision of infrastructure from the provision of services.
Mr. Banks: Answer the question.
Sir George Young: That is the answer that I give to the hon. Gentleman--[Interruption.]
Mr. Deputy Speaker: Order. There is no point in asking the Minister a question if he is not allowed to answer it.
Sir George Young: I am grateful for your protection from one of the more boisterous Chelsea fans,Mr. Deputy Speaker.
Sir Teddy Taylor: I am grateful for the strong and determined action that the Secretary of State has taken on LTS. He knows that the long-suffering passengers of Southend have had many problems for many years. Will the matter be resolved soon? Will it be a matter of days, weeks or months?
Sir George Young: I said on Monday that the inquiry will not be rushed, as it is important that it is full and complete. We must, however, complete it as soon as is reasonably practicable, and I will ensure that my hon. Friend is kept in the picture.
I say to my hon. Friends whose constituency lines have not yet been franchised and who, no doubt, want to get the benefits that are emerging that the Government want to see those benefits extended promptly to other parts of the country.
The hon. Member for Ladywood referred to investment. I have been particularly impressed by the willingness of the franchisees to invest in the future of the railways. Great Western Trains plans to refurbish and modernise its rolling stock ahead of current plans to enable it to provide additional and flexible services, while South West Trains is embarking on a £3 million programme of improvements to stations and passenger facilities such as security, lighting, waiting rooms and information services. That is
clear evidence of a long-term commitment to the railway by those who won the franchises, and that sense of commitment will drive forward the improvements in the railway that all hon. Members want to see.
A few months ago, the hon. Lady was trying to pretend that privatisation would not happen. Her plan was to stop privatisation, but it has failed. The first franchisees are operating, and nine franchises have either been awarded or are on the market. These alone comprise more than50 per cent. of the existing railway by revenue.
Mrs. Alice Mahon (Halifax):
Will the Secretary of State give way?
Sir George Young:
I shall make some progress, if the hon. Lady will allow me.
Pre-qualification has started for a further two franchises--South West and Wales, and the Cardiff Railway. The franchising director is making excellent progress. There is great market interest and serious bidders are coming forward with serious bids. Rolling stock companies, heavy maintenance depots, seven design offices, British Rail Telecommunications, on-board catering and a range of smaller businesses have all passed into the private sector. We have invited bids for 13 British Rail infrastructure support businesses, and I look forward to announcing the first sales very soon.
In all, more than 30 businesses have been sold or franchised, bringing proceeds of more than £2 billion. More than half the former British Rail by turnover has either been sold or is on the market. I am pleased that there is no evidence that bidders have been deterred by the attitude and the empty threats of the Labour party.
Mrs. Mahon:
Will the Minister confirm that in 1993 the House was promised that British Rail would be allowed to bid for franchises? Why has British Rail been excluded? Is it not an example of the Government saying one thing and doing another?
Sir George Young:
That is not the position. The matter is clearly set out in the legislation. The duties of the franchising director, Roger Salmon, are clearly set out, and there are certain conditions under which he can allow British Rail to bid. Those conditions have not so far been met. As the franchising director has been satisfied by the level of interest shown by the market as a whole, it has not been necessary to allow British Rail to bid. He is keeping the position under review.
Mr. Tam Dalyell (Linlithgow):
Will the Secretary of State give way?
Sir George Young:
I will, out of respect for the hon. Gentleman.
Mr. Dalyell:
On infrastructure--this is not a frivolous question--it may be within the recollection of those at the Department that, because of bad fencing, some cattle strayed on to the Edinburgh to Glasgow line near Polmont, causing a very bad accident in which fatalities occurred. One gathers that the responsibility for fencing and protection against cattle and other animals straying on
Sir George Young:
Of course no one wants cattle on the Edinburgh to Glasgow line. Normally, it would be Railtrack's responsibility permanently to safeguard the infrastructure. I will make some inquiries and write to the hon. Gentleman.
We have announced that Railtrack will be floated on the stock exchange in May. I firmly believe that its privatisation offers the best future for Railtrack, for passengers and for freight.
Mr. Campbell-Savours:
Will the Secretary of State give way?
Sir George Young:
No. I want to make some progress.
Privatisation will allow greater use of private sector skills in managing the network and will provide greater scope for private capital to be invested in improving the network. Railtrack recently published the first long-term plan for managing the rail network, detailing its intention to spend more than £1 billion a year over the next decade. That is a substantial sum and good news for all rail users.
Mr. Campbell-Savours:
Will the Secretary of State give way on that point?
Sir George Young:
No. I want to make some progress and deal with the hon. Member for Ladywood's argument that we have no mandate for the sale of Railtrack.
On the contrary, the sale of Railtrack was clearly foreseen when the White Paper was published three and a half years ago. We said then:
All the necessary powers were taken in the Railways Act 1993 and the Government made it clear at the time that the powers would be used in due course to privatise Railtrack. For example, my right hon. Friend the Member for Kettering (Mr. Freeman) said:
My noble Friend the Earl of Caithness said:
Ms Short:
I have here sheaves of quotations in which Ministers say the opposite. In Committee, the junior Minister, in exasperation, said:
Sir George Young:
I have made it clear that the Government also explained that Railtrack would move
"In the longer term the Government would like to see the private sector owning as much as possible of the railway. Powers will therefore be taken to allow the future privatisation of all BR track and operations."
"ultimately we wish to see Railtrack move into the private sector".--[Official Report, 1 November 1993; Vol. 231, c. 43.]
"Railtrack's existence as a Government-owned company will last only until it is feasible to transfer it to the private sector".--[Official Report, House of Lords, 15 July 1993; Vol. 548, c. 354.]
"We have been round the issue several times. Railtrack will be in the public sector for the foreseeable future".--[Official Report, Standing Committee B, 23 February 1993; c. 400.]
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