Rail Investment

Duncan Hames Excerpts

Thursday 25th November 2010 Commons Chamber

[Mr Hammond]

Yes. In accordance with our transparency agenda, we have made it clear—I made it clear in my previous announcement on roads—that we will in due course publish the business case analysis that informs decisions about projects that go ahead and projects that do not.

[Duncan Hames (Chippenham) (LD)]

There is a pressing need for additional carriages on the Cardiff to Portsmouth line—indeed, a literally pressing need around Bristol, and on trains serving Bradford-on-Avon. Will it be need and overcrowding, or the commercial positions of franchisees, that drive the allocation of the 650 new carriages?

[Mr Hammond]

This is not about the commercial position of franchisees; it is about the economic benefits. We are not just looking at costs and revenue. If revenues were able to justify the costs, franchisees would be able to do the work on their own, without Government support. We are looking typically at situations where the revenue from fares does not cover the costs, but the wider economic benefits justify the investment of public money.