HL Deb 17 June 1991 vol 530 cc9-10

3 p.m.

Lord Jay asked Her Majesty's Government:

What action they propose to take to carry out the recommendations of the report by the Monopolies and Mergers Commission on the London Underground (Cm 1555).

Lord Brabazon of Tara

My Lords, both the Government and London Underground Ltd. will give very careful consideration to the recommendations in the report. We shall be publishing our response in due course.

Lord Jay

My Lords, has the Minister noticed the statements made by the commission that the travelling public have been the principal victim because of under-Funding of the system in recent years? Does he agree that many deficiencies in the system, particularly of renewal after many years of neglect, require substantial government assistance before they can be put right?

Lord Brabazon of Tara

My Lords, the noble Lord refers to under-funding of the system. I believe he also spoke of recent years. I merely point out that since the Government took over the funding of London Transport Ltd. from the GLC only five years or so ago, funding has more than doubled from £165 million to £440 million.

The report makes a very considerable number of recommendations. There are 114 in all; 12 of them involve the Government and only three are for the Government alone. We shall respond to the report within the next three or four months. We find it a very valuable report.

Lord Boyd-Carpenter

My Lords, has my noble friend noted that the report is somewhat lacking in enthusiasm for the standards of administration operated by London Underground Ltd?

Lord Brabazon of Tara

My Lords, it is. As I have said, it is a very valuable report. It makes a large number of recommendations, among which are those noted by my noble friend. I hope that they will be acted on by London Underground Ltd.

Lord Clinton-Davis

My Lords, is the Minister seriously seeking to avoid any strictures on the part of the Monopolies and Mergers Commission for the current under-funding? Is he not aware that it has been suggested in the report that what the Government are proposing to do would measure up to only half of London Underground's basic needs? Is it still the Government's intention in the foreseeable future to insist on a subsidy-free network for London Underground? In that case the corollary would be that fare increases are the only answer that the Conservative Government see, which is rather unfair to the passengers of London Underground, who have to endure so much?

Lord Brabazon of Tara

My Lords, what the noble Lord fails to recognise is that any money spent on subsidies means that there is less money to be spent for investment. The Government have responded vigorously to the need for huge investment after decades of neglect. It is not just a question of pumping in more money. Raising standards on the oldest underground network in the world will take time and commitment by London Underground as well as by the Government.

Lord Clinton-Davis

My Lords, does the Minister therefore deny the assertion which is made in the report that what the Government are proposing to do represents roughly half of the basic needs of London Underground?

Lord Brabazon of Tara

My Lords, we do not necessarily deny the assertions made in the report. As I have said, we shall respond to the report in due time and with due consideration.

Lord Jay

My Lords, will the Minister at least assure the House that, in fixing the financial targets for London Underground for the present financial year, which they have not yet done, they will take seriously the recommendations made in the report?

Lord Brabazon of Tara

My Lords, I believe I can give that assurance.