§ 1. Mr. Galbraithasked the Minister of Transport what estimate he has made of the various costs of running the railways which previously contributed to their deficit and which will be borne by public funds in the first year following the implementation of the Transport Act, 1968.
§ The Minister of Transport (Mr. Richard Marsh)Direct Government assistance to the British Railways Board in 1969 will total about £77 million, comprising £62 million for passenger services under Section 39 of the Transport Act and £15 million for surplus track under Section 40. In addition, the National Freight Corporation will receive £17 million of grant towards the losses on its freight sundries activities transferred from the Railways Board on 1st January, 1969. The recapitalisation will transfer an interest liability of some £30 million.
§ Mr. GalbraithCan the Minister tell us what has happened to the difference between this figure of £77 million and the £150 million lost last year? Where is that money being found now?
§ Mr. MarshWe are writing off the capital debt for the future, but the £77 million is direct assistance and not necessarily the whole deficit.
Mr. Edward M. TaylorDoes the right lion. Gentleman think that with substantial grants totalling well over £100 million it might be possible for British Rail to break even this year?