Eurotunnel: Structure and Charges

Lord Bradshaw Excerpts

Wednesday 7th May 2014 Lords Chamber

[Baroness Kramer]

My Lords, the Government are very committed to the single market. We have been strong supporters of the freight corridor strategies that will now extend from the Channel Tunnel through to London, as well as extending the reach across the continent. I take very much to heart the words expressed by the noble Lord, Lord Berkeley, and I will follow up on his proposal.

[Lord Bradshaw (LD)]

I am pleased to hear what the noble Lord opposite said about freight charges. Charges for passengers using the Channel Tunnel are so high that I ask my noble friend to consider whether Eurotunnel is abusing its monopoly position so that the market might be open to more providers and better services.

[Baroness Kramer]

As my noble friend Lord Bradshaw knows, part of the agreement that predated the infraction, which is the subject of this Question, is that the Channel Tunnel Intergovernmental Commission will be replaced by the Office of Rail Regulation for the UK side of the tunnel and by its equivalent, ARAF on the French side. Their powers will be enhanced and they will put in place a charging strategy. My noble friend will be aware, however, that when the tunnel was built, to achieve that financing, certain concessions and rights were given, which obviously predate the relevant European directives. We recognise that we must honour those contractual commitments, although they have changed somewhat over time, as has the EU. I do not want to give too strong a commitment to my noble friend Lord Bradshaw, but I can say that the issues he raises are being looked at seriously.