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Goods Vehicles: Community Authorisation

Earl Attlee asked Her Majesty's Government:

Lord Macdonald of Tradeston: EC Regulation 881/92 requires all vehicles engaged in international road haulage and registered in another member state to carry a certified copy of a Community authorisation when entering the UK as evidence that the vehicles comply with the domestic operator licensing system of that state. This can be quickly and easily checked at the roadside by the enforcement authorities.

Earl Attlee asked Her Majesty's Government:

Lord Macdonald of Tradeston: Foreign registered vehicles engaged in international haulage in the UK are required by EC Regulation 881/92 to carry a certified copy of a Community authorisation. The authorisation is evidence that the vehicles comply with the domestic operator licensing system of the member state in which they are based, including the requirements for registering the vehicle.

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London Underground: Air Conditioning

Lord Lea of Crondall asked Her Majesty's Government:

    Further to the Written Answer by Lord Falconer of Thoroton on 18 July 2001 (WA130), what is the progress of the review on air conditioning on the London Underground network.[HL5274]

Lord Macdonald of Tradeston : This is a matter for London Underground. I am informed that London Underground has now identified the scope of systems that could be applied and are commercially available to introduce onto the network to improve ventilation and areas of research work that could be undertaken to develop new systems.

Road Congestion

Lord Berkeley asked Her Majesty's Government:

    How they intend to achieve the outputs from the public service agreement announced on 15 July in respect of reducing road congestion on interurban trunk roads and large urban areas in 2010 below the 2000 levels. [HL5369]

Lord Macdonald of Tradeston: The PSA congestion target in the Spending Review White Paper was first published in Transport 2010: The 10 year Plan in July 2000. The plan identifies the reduction of congestion as a priority. It seeks to address the problem through an integrated approach, using a wide range of measures. The plan is a package of investment to improve railways, strategic roads and local transport.

Railways: Public Service Agreement

Lord Berkeley asked Her Majesty's Government:

    In respect of the intention in page 9 of the public service agreement announced on 15 July to "secure improvement in rail punctuality and reliability with a 50 per cent increase in rail use in Great Britain from 2000 to 2010", whether this refers to passenger or freight traffic; and, if the latter, what are the reasons for reducing these targets to 50 per cent from the 80 per cent in the 10 year transport plan at a time when rail freight traffic grew by 9 per cent in the last year.[HL5370]

Lord Macdonald of Tradeston : The Public service agreement announced on 15 July, which seeks a 50 per cent increase in rail use in Great Britain from 2000 to 2010, will be measured in terms of passenger

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kilometres, and therefore does not refer to freight traffic. The Department for Transport retains the target, as set out in the 10 year plan for transport, for a significant increase in rail freight's share of the freight market by 2010.

Network Rail: Contingent Liabilities

Lord Haskel asked Her Majesty's Government:

    What are their proposals to incur contingent liabilities in respect of Network Rail, as set out in the minutes laid before Parliament on 27 June. [HL5385]

Lord Macdonald of Tradeston : In our statement on 27 June on Network Rail, we informed the House of two minutes laid that day setting out the contingent liabilities the Secretary of State for Transport proposed to incur on behalf of the Government to enable Railtrack plc to be acquired by Network Rail.

This classification of Network Rail was a decision taken, not by the Government but by the Office for National Statistics. The ONS takes independent decisions in matters concerning the classification, preparation and publication of statistics. It was its view that Network Rail would be classified as a private sector corporation—once its board has been ratified by its membership—and that the company's borrowing could be classified as private sector borrowing in the national accounts. In reaching this conclusion the ONS has, I understand, based its considerations upon the European system of accounts 1995 (ESA95).

As we explained to the House in our Statement on 27 June, the SRA is providing Network Rail with standby credit facilities. It is the commercial debt markets that will provide the required borrowing for Network Rail, with the credit facilities called upon in identified, though unlikely, circumstances. On this basis the SRA's standby credit facilities are considered to be contingent liabilities and would only score as public expenditure in the extremely unlikely event of them being called upon.

The Comptroller and Auditor General of the National Audit Office has, in his capacity as auditor of the SRA, concluded that Network Rail should be accounted for as a subsidiary of the SRA. This judgment is based on the application of UK generally accepted accounting practice (UK-GAAP). As such the expenditure and liabilities of Network Rail will be accounted for in an open and transparent way—a very welcome step.

The provision of any funds necessary to meet the SRA's financial obligations could be made by way of grant under paragraph 7 of Schedule 14 to the Transport Act 2000 or by permitting the SRA to borrow in accordance with paragraph 8 of that schedule. Whether the SRA's financial obligations (subject to normal supply procedures) would be met by a grant, by allowing it to borrow, or a mixture of both, would be determined if the need arose. It therefore

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remains the Secretary of State's intention to proceed as proposed and incur the liabilities set out in the minutes.

The Government judge that the contingent liabilities set out in the minutes laid before the House on 27 June provide robust means of quickly setting up

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a strong and well-managed company to take over the responsibilities of Railtrack as network operator; and to do so by uniting the rail industry to work together under the strategic guidance of the SRA with government with the overall aim of delivering the efficient, safe and reliable railway network that customers want.



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