HC Deb 24 October 1983 vol 47 cc9-10
10. Mr. Adley

asked the Secretary of State for Transport if he will make a statement on Her Majesty's Government's policy towards finance for British Rail.

Mr. Ridley

I have today written to the chairman of the British Railways Board, giving him guidance on the Government's policies and, with permission, I will make a statement about this later in the afternoon. As to the current year, the central Government grant to the passenger railway under the public service obligation will be £819 million, subject to certain adjustment factors. The full details of this settlement are given in a written answer to my hon. Friend the Member for Batley and Spen (Mrs. Peacock) today.

Mr. Adley

Would it be more convenient to wait until the statement, or should I ask my question now?

Mr. Speaker

The hon. Gentleman has an opportunity to ask his question now.

Mr. Adley

I congratulate my right hon. Friend on his appointment, but advise him that some of us will be keeping a wary eye on him in his dealings with the railways. I wish to ask him a simple question: does he believe that a small, crowded, industrial nation such as Britain needs a modern railway system? If he does, when will he provide the finance for British Rail to provide the system?

Mr. Ridley

I am grateful to my hon. Friend for his congratulations. I congratulate him on a good try, which I hope results in further opportunities to question me later. The Government believe in a railway system of the sort that he described. The statement that I have made provides the necessary funds for that. I shall have more to say about that matter later this afternoon.

Mr. Barry Jones

Does the right hon. Gentleman agree that one way in which Britain could tackle the unemployment problem would be for British Rail to receive much more generous funding? Is he aware that in my constituency, and in north-east Wales generally, there are proposals to run down the services provided by British Rail, even though that area is greatly afflicted by unemployment? Will he bear that in mind when he makes his statement later?

Mr. Ridley

The hon. Gentleman must bear in mind that additional finance for British Rail or any other nationalised industry means additional taxation, which in turn is likely to mean a reduction in employment in some other part of the economy.

Mr. Stephen Ross

Has the Secretary of State had time to study British Rail's corporate plan, which was published in August 1983? It illustrates the large savings that have been made by British Rail, on which it should be congratulated. Does the five-year plan published in that document accord with the right hon. Gentleman's views?

Mr. Ridley

I join the hon. Gentleman in congratulating British Rail on the savings that it has so far made. He will know from the plan and his knowledge of the industry that British Rail is fully aware that it can make even greater savings. That will be the subject of what I have to say later.

Mr. Haselhurst

Does my right hon. Friend's response to British Rail cover the proposals for electrification that are now with the Department?

Mr. Ridley

There is only one specific proposal for electrification before the Department. I wish to study it carefully and personally. I hope to make a decision as soon as possible.

Several Hon. Members

rose——

Mr. Speaker

Order. There is to be a statement later and I shall bear in mind those hon. Members who have not been called during Question Time.