HC Deb 25 February 1985 vol 74 cc5-6
4. Mr. David Marshall

asked the Secretary of State for Transport if he has any plans to introduce legislation to privatise any part of the British Rail network.

The Parliamentary Under-Secretary of State for Transport (Mr. David Mitchell)

We have no present plans to do so.

Mr. Marshall

As the basis of paying transport supplementary support grant has now been changed, how does the Minister intend to finance uneconomic rural rail services?

Mr. Mitchell

The normal system for uneconomic rural rail services continues with a PSO grant. If the hon. Gentleman is referring to the PTE areas, I must tell him that it is for the PTEs to decide their priorities within their own areas.

Mr. Maude

Is my hon. Friend aware that many people believe that it is only when British Rail is subjected to the full discipline of the private sector that the deep-seated problems of overmanning will be dealt with?

Mr. Mitchell

We have set BR very tough requirements in its objectives. It is for it to decide on the most effective way of pursuing them.

Mr. Flannery

If the Minister should ever think of privatising any section of BR, will he bear in mind that there was a time when the bus and rail services were subject to the "full discipline of the private sector"? They failed the British people to such an extent that it became necessary long before the war to municipalise the buses, and absolutely essential to nationalise the train network, as it just was not functioning properly.

Mr. Mitchell

I fear that the hon. Gentleman is living in the past. A considerable number of private bus operators are in existence, and have been for many years.

Mr. Flannery

I was talking about the past, not living in it.

Mr. Watts

Is my hon. Friend aware of the two sets of proposals to privatise the branch line from Slough to Windsor, and of BR's rather discouraging reply? Will he urge BR, in his most persuasive manner, to look seriously at those proposals to turn a loss-making branch line into a profitable private undertaking?

Mr. Mitchell

Having set British Rail very tough objectives, including a reduction of about £200 million in the amount of subsidy that it receives from the taxpayer, it must be for it to decide the most effective way of pursuing them. If it feels that it can achieve its objectives more effectively in the way that my hon. Friend has outlined, we shall certainly not discourage it from doing so.

Mr. Harris

If my hon. Friend will not consider privatising the network, will he at least acknowledge that one section of British Rail, the catering services, is positively crying out for privatisation?

Mr. Mitchell

British Rail has recently drawn up criteria for competitive tendering for services. I do not doubt that many in the private sector will seek to tender for catering and other services against those criteria.