HC Deb 23 February 1994 vol 238 cc270-1
10. Mr. Wilson

To ask the Secretary of State for Scotland if he will make a statement on the future funding of Strathclyde passenger transport executive, in the context of Scottish local government reorganisation.

Lord James Douglas-Hamilton

Under our proposals for local government reform, the Strathclyde passenger transport executive will be funded by grants made by the Strathclyde passenger transport authority.

Mr. Wilson

Does the Minister understand—I doubt it —that the Strathclyde passenger transport executive, which is a highly successful operation, is now threatened by the twin nonsenses of rail privatisation and local government reorganisation? Does he realise that these destabilise investment and threaten vastly increased fares? Does he recognise that a leasing deal for rolling stock ordered by Strathclyde PTE has been thrown into limbo by the fact that nobody who will be involved in financing the deal knows where, in a few years'time, Strathclyde PTE will get the money to pay for the rolling stock? Does he recognise also that the access charges announced last week by Railtrack have been passed on, in huge measure, to Strathclyde PTE? Ministers have guaranteed that Strathclyde PTE's additional charges will be covered for one year. Can the Minister confirm that the guarantee is for one year only? What will happen after that? If the money to meet these charges does not come from the Government, will it come from the local government taxpayer or from the passenger?

Lord James Douglas-Hamilton

I assure the hon. Gentleman that the costs concerned will be taken fully into account. I also confirm that, together with Councillor Malcolm Waugh and the Minister for Public Transport, I shall have a meeting on Monday with Lombard, to which the hon. Member has referred. Leasing and funding are matters for Strathclyde regional council, but I make it clear that the Scottish Office strongly supports Strathclyde's efforts to conclude a rolling stock leasing deal. Obviously I shall take a very close interest in all aspects of the negotiations. Indeed, I have already attended one meeting with the Minister. I shall let the hon. Gentleman know the outcome.

Mr. Michael J. Martin

I support the comments of my hon. Friend the Member for Cunningham, North (Mr. Wilson). The Strathclyde passenger transport executive—in particular, Councillor Malcolm Waugh—has done an excellent job building up both rail and road transportation for the public, especially those who cannot afford cars. I should like to put on the record the fact that Strathclyde PTE opened two small railway stations in my constituency—at Cowlairs and High Possil Park—and that it would be a great shame if either of those was endangered as a result of our losing out on the passenger transport service.

Lord James Douglas-Hamilton

I confirm that the local government reform proposals should present no impediment whatever to the satisfactory conclusion of these matters. I shall look in particular into the point that the hon. Gentleman has raised. With regard to boundaries, the remit and responsibilities of Strathclyde PTE will not change as a result of local government restructuring. The new Strathclyde PTA will, of course, replace Strathclyde regional council as the passenger transport authority.

Mr. David Marshall

What changes will have to be made to the travel concession scheme in Strathclyde as a result of reorganisation?

Lord James Douglas-Hamilton

I confirm that there is no reason why local government reorganisation should adversely affect the availability of travel concessions. The hon. Gentleman's theme is incorrect.