The consortium which hopes to build the Channel Tunnel railway link wants a £1bn government hand-out to help finance the £5.5bn deal.
The Independent reports that John Prescott, the deputy prime minister, rejected the demand by London and Continental Railways (LCR). He also apparently warned the consortium that they had an obligation to complete the project for the price agreed.
LCR has twice cancelled City flotations because of concern about investor confidence in the project. Its current troubles make it more of a possibility that Railtrack will play a bigger part in the project. The Financial Times reports in detail on the background to LCR’s problems.
- The Independent 29/01/98 page 1
- Financial Times 29/01/98 page 10
- The Guardian 29/01/98 page 22
- The Daily Telegraph 29/01/98 page 30
