Department for Transport

London & Continental Railways restructured
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date 8 Jun 2009 09:05
source Department for Transport
type Press release

note DEPARTMENT FOR TRANSPORT News Release (070) issued by COI News Distribution Service on 8 June 2009

The latest stage in the reorganisation of the company that runs Eurostar services and St Pancras International Station has been completed, Transport Secretary Andrew Adonis announced today.

The Government has taken formal control of London & Continental Railways Ltd (LCR) and its financial subsidiaries, as the next step toward the sale of an operating concession for the new railway. The move is designed to ensure that the UK's high speed line can be opened up to more competition, resulting in improved services for passengers and a better deal for taxpayers.

Andrew Adonis, Secretary of State for Transport, said:

"London & Continental Railways has proven an extremely successful business with more people than ever using Eurostar services, the new high-speed line and St Pancras International Station. Domestic passengers will also soon benefit from high speed domestic services on the line linking Kent and London.

"Today's announcement represents the latest phase in our plans to restructure the company - the net result will be to open up the high speed rail line to competition, resulting in better services for passengers and a better deal for taxpayers."

In March 2006 the Government announced its plans both to ensure value for money for the taxpayer and the successful delivery of the new high-speed line, as well as the operation and future development of Eurostar services.

Two key stages in that plan have already been achieved:

* On 20 May 2008 the Government received Royal Assent for the Channel Tunnel Rail Link (Supplementary Provisions) Bill giving it the necessary powers to undertake the restructuring and sale of LCR.

* On 14 May 2009 the European Commission gave the UK Government State Aid clearance enabling it to financially restructure LCR, commenting that it will benefit competition and users.

The completion today of the restructuring of LCR lays the ground for the sale of a long-term concession in High Speed 1, the value of which will be used towards offsetting public investment in the railway's construction.

Notes to Editors

1. London & Continental Railways (LCR) was selected by the Government in 1996 to build and operate the high speed Channel Tunnel Rail Link (CTRL), now called High Speed 1 (HS1) and to own and operate the UK arm of the Eurostar international train service.

2. LCR has managed the construction and commissioning of the new railway, St Pancras and the other stations, and the substantial associated land development and regeneration projects.

3. The Government has had a special share in LCR since 1999 which has given it a wide range of controls over the company. LCR and its liabilities are already underwritten by the Government; consequently, there is no change to existing public borrowing requirements from today's announcement.

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Department for Transport Website: http://www.dft.gov.uk

Railhub Archive ::: 2009-06-08 DfT-001