Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to page 5 of the minutes of Network Rail's Board meeting of 28 September 2016, what the accounting reason referred to is which requires HM Treasury in turn to require the proceeds from asset sales to count towards general deficit reduction; and what recent discussions he has had with the Chancellor of the Exchequer on the proceeds of Network Rail's asset sales programme.
As a government organisation, Network Rail’s expenditure is recorded following rules in the European System of Accounts 2010 (ESA10). My Department has agreed with HM Treasury that those asset sales classified as deficit-reducing under ESA10 definitions can fund expenditure on rail enhancements (expenditure which in turn classifies as deficit-increasing under ESA10 definitions).
The Department holds regular discussions with HM Treasury on a wide range of topics, including Network Rail’s asset sales programme.