Pension fund Equitix joins calls for Eurostar bailout
Pension fund Equitix has added its voice to calls for ministers to help prop up the struggling cross-channel Eurostar service.
The fund is one of the joint owners of HS1, the high-speed rail line linking London to the Channel Tunnel, which depends on the Eurostar for about a third of its revenues.
The Times reported that Equitix had warned ministers that failing to prop up the service could put investors off Britain.
Chief operating officer Siôn Jones said: “Supporting Eurostar is an issue for both the UK and French governments. HS1 is the UK’s green gateway to Europe and Eurostar’s services contribute significantly to the reduction of carbon dioxide emissions.
“International investors are happy to take some risk; however, prolonged periods of no income will deter some from investing in the UK.”
As a result of the pandemic, passenger number on the Eurostar have dropped about 95 per cent.
The company is currently operating a single train a day to both Paris and Brussels, leading it to plead with ministers for support.
But having sold its stake in the rail link back in 2015, it is understood that ministers are reluctant to prop up the line.
The French government, which owns 55 per cent of the firm, has already said that it will stand by the service.
Negotiations with UK officials are ongoing. A spokesperson for the Department for Transport said:
“We recognise the significant financial challenges facing Eurostar as a result of Covid-19 and the unprecedented circumstances currently faced by the international travel industry.
“The government has been engaging extensively with Eurostar on a regular basis since the beginning of the outbreak. We will continue to work closely with them as we support the safe restart and recovery of international travel.”