Written question asked by John Marek (Labour) on Friday, 12 January 2001, in the House of Commons. It was due for an answer on Wednesday, 17 January 2001. It was answered by Keith Hill (Labour) on Wednesday, 17 January 2001 on behalf of the Department of the Environment, Transport and the Regions.

Dept of the Environment Transport and the Regions

Question: To ask the Secretary of State for the Environment, Transport and the Regions, what conditions he has attached to public money given to the railway industry as subsidy in relation to the priority for its repayment before dividends are paid to shareholders.

Answer: Dr. Marek: To ask the Secretary of State for the Environment, Transport and the Regions what conditions he has attached to public money given to the railway industry as subsidy in relation to the priority for its repayment before dividends are paid to shareholders. [145925] Mr. Hill: Subsidy is paid to the railway industry in recognition of benefits which cannot be captured through the passenger fare box or freight charges. The conditions attached define what is to be delivered. Passenger franchise agreements provide for penalties for poor performance by train operators. There is a penalty and incentive regime for Railtrack and the Rail Regulator has powers, strengthened by the Transport Act 2000, to enforce Railtrack's compliance with the conditions in its licence to operate the rail network. Dividends for shareholders are for the companies to decide.

Secondary information

Type: Written question
Reference: 361 c263W; 145925
Session: 2000-01
Subjects: Finance Investment income Government assistance Railways Railway network Repayments Shareholders Subsidies Train operating companies
Link: View this Written question on www.publications.parliament.uk