HC Deb 04 August 1976 vol 916 cc1702-4
9. Mr. Stan Crowther

asked the Secretary of State for the Environment if he intends to visit South Yorkshire in order to discuss with local representatives the proposed reduction in local government expenditure.

Dr. Gilbert

My right hon. Friend has at present no plans to do so.

Mr. Crowther

Are my hon. Friend and his right hon. Friend the Secretary of State aware of the grave public disquiet in South Yorkshire over Press reports that quote a senior official of British Rail as saying that the local rail services, including even the stations in my constituency and that of my right hon. Friend the Secretary of State for Defence, will be in jeopardy if the South Yorkshire County Council does not provide a sufficiently large subsidy next year? Does my hon. Friend agree that if that unfortunate result occurs because of his pressure on the county council to reduce its spending, especially on transport, the public will undoubtedly lay the blame at the door of the Government? Bearing that in mind, should he not be talking about the matter to the people concerned?

Dr. Gilbert

I have no knowledge of the statement to which my hon. Friend refers. I shall be grateful to receive details of it. We have no plans for cutting back on revenue support for the passenger services of British Rail. My right hon. Friend and I have made that clear several times. There are difficulties in South Yorkshire about the size of the deficit arising from the support of the bus services. The ridership is increasing, but so is the deficit. That is increasing astronomically.

Mr. Scott-Hopkins

Will the hon. Gentleman assure the House that those local authorities, such as the West Derbyshire County Council, that have reduced their expenditure in this current financial year will not be penalised in future, in view of the Chancellor's statement and the Prime Minister's unsatisfactory reply during Prime Minister's Question Time yesterday?

Dr. Gilbert

At present my right hon. Friend has no plans to discriminate between local authorities on overspend. We have been having a series of amicable discussions with them as to how we can cut back on the currently indicated overspend for 1976–77 and deal with the implications of the Chancellor's statement about 1977–78.

Mr. Ward

Have the hon. Gentleman and his colleagues contemplated a reduction in the allocation to local authorities of borrowing permissions for locally-determined schemes?

Dr. Gilbert

It is possible that action of that sort will be necessary in the transport sector where there is no other means of meeting overspend on current account.

Mr. Raison

Is it not a fact that South Yorkshire has been defying the Government's advice on local government spending? Is it not grossly unfair, as my hon. Friend the Member for Derbyshire, West (Mr. Scott-Hopkins) has said, that the authorities that try to keep in line with Government action should be penalised?

Dr. Gilbert

I have had discussions with the leaders of South Yorkshire and all the metropolitan counties on the way in which we can meet the overspend problem together. South Yorkshire has been left in no doubt as to my views on the seriousness of the situation. I think that its representatives recognise that the degree to which a local authority has kept in line with Government policy will be taken into account in the allocation of next year's transport supplementary grant.