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The negotiations are for a contract of nearly 30 years, a multi-billion pound spend over the course of many Parliaments. In all the circumstances, the Government do not believe it would be appropriate to enter into this particular contract in the immediate run up to a general election. To ensure that a decision is taken at the beginning of the next Parliament on the basis of the fullest evaluation, the Secretary of State has today asked Sir Andrew Foster, former controller of the Audit Commission, to provide an independent assessment of the value for money of the programme and the credibility and the value for money of any alternatives which meet the programme's objectives. It is critical for rail passengers that the right long-term decision is made about the next generation of inter-city trains, which will have a life of 30 years or more.

The existing rolling stock dates back to the 1970s and needs to be replaced. If Sir Andrew Foster reaffirms that the inter-city express programme is better than the alternatives, the Secretary of State's intention would be to proceed with the project in the next Parliament, subject to satisfactory resolution of all the contractual issues.

Sir Andrew Foster will consult Agility Trains, the Department, the relevant train operating companies, the Office of Rail Regulation, Network Rail, passenger groups and the devolved Scottish and Welsh Administrations.

Sir Andrew Foster will report within three months. The report and the Government's response will be published and reported to Parliament. A copy of the letter from the Secretary of State to Sir Andrew Foster has been laid in the Libraries of both Houses.

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