HC Deb 29 April 1981 vol 3 cc772-3
5. Mr. Campbell-Savours

asked the Secretary of State for Transport what progress has been made regarding the implementation of the British Railways corporate plan.

Mr. Fowler

The basic conclusion of the plan is that the board can achieve sufficient improvements in productivity to enable them to finance substantially more investment in future without needing external finance beyond current levels. I have always made clear my view that productivity improvements should be used to increase the board's internal resources available for investment, and I look forward to seeing signs of progress in this direction. Implementation of the plan is for the railways board.

Mr. Campbell-Savours

Does not the plan make it clear that 1981 is the year when decisions have to be taken? Will the right hon. Gentleman tell the House when we can expect a statement increasing the financial limits of British Rail, enabling it to carry out that precious investment?

Mr. Fowler

That matter is now being considered by the Government. I intend to make a statement to the House in that respect as soon as possible.

Mr. Kenneth Carlisle

Can my right hon. Friend tell us more about improvements in productivity, because gains in that respect are essential to the successful implementation of the plan?

Mr. Fowler

The corporate plan sets out a programme of improvements in productivity. I hope that both sides of the House agree that the attainment of better productivity is crucial to the future of the railways. In freight, in particular, improvements can be made. I hope that these improvements are made, because about two-thirds of the railway costs are those of wages and salaries.