Ridley damns Chunnel plan
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TRANSPORT SECRETARY Nicholas Ridley has poured cold water on the latest proposals for a twin-bore tunnel across the Channel.
An Anglo-Fench banking group's report has concluded that a rail tunnel with a vehicle shuttle service was the only type of crossing that would attract sufficient private financing.
But they warned that such a scheme, which would cost f7.5bn, would require some Government commercial guarantees.
The problem for the banks is that the British Government is insistent that it will only back the project if there is 100 per cent private finance.
The 500-page report suggests two forms of financing but both would require government backing.
Mr Ridley told MPs: "It has been and remains the Government's firm position that any project would have to be financed entirely without the assistance of public funds and without commercial guarantees by the Government.
So far we have seen no proposal which demonstrates that it can meet this condition".
Prospective promoters would be given time to consider the report and to assess whether they could raise sufficient cash to go ahead without financial support from the Government.