Departmental Accountancy

Transport written question – answered on 5th February 2008.

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Photo of Mark Hoban Mark Hoban Shadow Minister (Treasury)

To ask the Secretary of State for Transport what items of her Department's (a) revenue and (b) expenditure are uprated using (i) the consumer prices index, (ii) the retail prices index and (iii) other measures of inflation.

Photo of Jim Fitzpatrick Jim Fitzpatrick Parliamentary Under-Secretary (Department for Transport)

A comprehensive answer, covering all items of expenditure and revenue within the Department, could be produced only at disproportionate cost. The majority of the Department's expenditure and revenue items are determined on an individual grant or contract basis, with each having their own terms and conditions.

However, major items in the Department's accounts that are index linked include:

For rail, the franchise subsidies/premiums and the Network Rail grant are both fixed in real prices, and are uplifted by reference to the retail prices index.

The domestic capacity charge, paid to the London and continental railways to ensure that the high speed rail link is available for domestic services, is uprated in line with the RPI.

The Highways Agency has granted a £60 million subordinated loan to Severn River Crossing plc. The loan is indexed by reference to the RPI and carries an interest rate of 6 per cent. per annum.

The latest private finance initiative schemes entered into by the Highways Agency, under design, build, finance, operate (DBFO) arrangements, are uprated in line with RPI.

Voluntary early retirement pension payments are uprated in line with RPI, where they fall under appropriate provisions of the Principal Civil Service Pension Scheme.

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