Channel Tunnel (Initial Finance) Bill

Part of the debate – in the House of Commons at 12:00 am on 8 November 1973.

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Photo of Mr Fred Mulley Mr Fred Mulley , Sheffield Park 12:00, 8 November 1973

That is most illuminating. I am only sorry that the right hon. Gentleman did not tell us that when he replied to our last debate. He did not mention securing the understanding of European railways that they would be unable to go beyond London, and he did not say that they would be content for their traffic to travel, for example, from Italy to Sheffield carried by British Rail. Obviously, the great attraction of the scheme would be removed if freight had to be unloaded in London and transferred from one railway system to another, as I imagined would need to be the case.

We must get this absolutely clear. In the fulness of time it may be desirable for some railway tunnels to be improved, for some permanent way to be replaced and for bridges to be widened and signals removed in order to accommodate continental rail traffic. British Railways cannot be expected to do this in addition to their normal enormous commitments necessary to maintain an efficient and viable system. Now we have the Government's assurance that all the necessary railway investment consequent upon the tunnel will be met by the Exchequer.

That is very good news, and if the right hon. Gentleman had told us that a fortnight ago we should have been much happier. He did not say anything like that, that all British Rail expenditure arising from and in connection with the tunnel would be found for it by the Exchequer by way of grant. That is important. I congratulate the Government on having done it. It removes part of our difficulty about British Rail, which still worried us, because the whole financial structure set out in the White Paper is based on the major revenues coming from rail traffic.

In the Opposition's view, the White Paper, which the House has accepted, makes excessive provision for the private capital participating in the proposed scheme. We are in rather unusual company in sharing the view of many financial commentators, including the Economist, that there should be no need in the circumstances for the kind of guarantees proposed in the White Paper, the first of which is before the House. For those reasons I advise my right hon. Friends to vote against the Bill.