Government opposition to bonds for underground was purely political move
Don Foster MP, Liberal Democrat Shadow Transport Secretary, at Transport Questions today was told not to believe everything he reads in the paper when he asked for confirmation that the Strategic Rail Authority (SRA), were considering issuing bonds to pay for updating the rail network.

Mr Foster said: “It is remarkable that John Spellar should dismiss the proposal for bonds out of hand when it was voiced by Richard Bowker, chairman of the Government’s own Strategic Rail Authority.

“If bonds are being considered it clearly shows that the Government’s opposition to bonds for investment on the Underground was purely a political move, rather than against bonds in principle.

“However, like taking Railtrack into administration, it would not be the first time that the Government has adopted Liberal Democrat proposals to deal with the problems of our transport system.

“And the Government’s continued ignorance over the amount of private investment available for the West Coast Railways is astounding. It certainly does not give investors confidence that it is a well-run scheme which will give them a competitive level of financial return.”