HC Deb 01 February 1988 vol 126 cc687-8
4. Mr. Hood

To ask the Secretary of State for Transport what new funds have been made available to local authorities as compensation for the extra expenditure caused by bus deregulation; and if he will make a statement.

The Minister for Public Transport (Mr. David Mitchell)

Deregulation has resulted in a substantial overall reduction in expenditure, so there is no need for extra funds.

Mr. Hood

Is the Minister aware that since deregulation the elderly and disabled in rural communities have become virtual prisoners? Is he further aware that, as a result of the Government's obsession with selling off transport to the quick buck merchants, our rural communities are being caused much stress and concern? Does he understand that, by refusing to give proper financial assistance to local authorities, the Government are compounding a great crisis in our rural communities?

Mr. Mitchell

If the hon. Gentleman considers the facts, he will find that the position is somewhat different. Local authorities are responsible for providing services for the disabled. Questions about bus services in Scotland should, of course, be directed to my right hon. and learned Friend the Secretary of State for Scotland. However, I understand that, following deregulation, the need for bus subsidies in Scotland has fallen by more than £10 million, and that should provide ample funds for the services required.

Mr. Butler

Is my hon. Friend aware that ratepayers in Cheshire have been saved £2 million a year? Should we not be praising bus deregulation and the savings achieved all over the country?

Mr. Mitchell

My hon. Friend is undoubtedly correct in what he says about Cheshire. The House may be interested to know that across the country as a whole the saving is about £40 million a year for hard-pressed ratepayers and taxpayers. If one includes the savings from precept control, the figure is somewhat in excess of £100 million.

Mr. Robert Hughes

Will the Minister study the evidence produced by Grampian regional council, which is typical for authorities throughout the country? In eight months last year there were 300 different service changes. The service to rural areas is crumbling rapidly and the director of finance has forecast a crisis unless the Government assist with finance to the area. Is that not the pattern throughout the whole country? Will the Minister publish the evidence instead of relying on homilies on anecdotal evidence, which he appears to repeat from time to time?

Mr. Mitchell

There is nothing anecdotal about the savings which I have just reported to the House and which in Scotland amount to more than £10 million. That provides the local authorities concerned with the resources to provide services in rural areas as may be required. If there are changes in the pattern of services, it may be that the services are more closely resembling what people want rather than simply being what they were before.

Mr. Holt

Will my hon. Friend note that the county of Cleveland now has improved services and a £4 million reduction in the money taken from ratepayer's pockets before deregulation? In view of the announcement by Cleveland county council of a 30p increase in rates this year, which is scandalous, I hope that my hon. Friend can find something else to deregulate.

Mr. Mitchell

I do not have power to control what happens in Cleveland, but well over 60 per cent. of the money previously spent on providing subsidies for bus services in the county has now been saved.