Select Committee on Transport, Local Government and the Regions Appendices to the Minutes of Evidence


Memorandum submitted by Ernst & Young (TYP 60)

  Having reviewed our notes of our appearance before the Transport Sub-committee on the afternoon of 6 February 2002, we thought it opportune to clarify one of the issues raised.

  We were asked how much of the Company's funding requirement would be privately financed and replied that none of it would. This is currently the case.

  However, we are in the process of preparing to procure commercial bank facilities, to be guaranteed by the Secretary of State for Transport, Local Government and the Regions ("the Secretary of State"), to replace the existing loan financing from the Secretary of State and to provide financing for the six months following 31 March 2002, in accordance with the terms of the loan agreement between ourselves, the Secretary of State and Railtrack PLC. The achievement of this refinancing is dependant on the terms of State Aid approval and the commercial terms imposed by the banks.

  Whilst it would not be correct at this point in time to assume that private funding will be available, I felt it appropriate to ensure that the Sub-committee were aware of the refinancing activity in the light of the question asked.



 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2002
Prepared 27 May 2002