HC Deb 15 January 1975 vol 884 cc427-8
7. Mr. Hicks

asked the Secretary of State for the Environment what principles he applies in deciding the level and distribution of local transport expenditure for transport supplementary grant in each county for 1975–76.

The Minister for Transport (Mr. Frederick Mulley)

The matters I took into account are explained in the decision letter sent to all counties. I have sent a copy to the hon. Member and arranged for copies to be placed in the Library.

Mr. Hicks

In view of the sparsity of public transport in rural areas such as Cornwall, does not the Minister agree that there is a need for the Government to introduce measures designed to widen the whole basis of the transport supplementary grant support so that a more flexible local transport system can be evolved?

Mr. Mulley

It is open to all county councils to make grants to maintain rural transport. Unfortunately many of them have not done so. Those that have done so receive an allocation for that purpose under the transport supplementary grant arrangements. I agree that the structure of the TSG is far from satisfactory, but I am bound by the statutory provision enacted by the Conservatives when they were in government.

Mr. Speed

Will the Minister confirm that TSGs should not be used to subsidise fares?

Mr. Mulley

The hon. Gentleman should know, perhaps even better than I because he was there when this was worked out, that the moneys are paid to the local authorities, which have great discretion in spending that money. It is entirely a matter for the local authority how the TSG is spent.