HL Deb 29 June 1992 vol 538 cc589-90

2.49 p.m.

Lord Underhill asked Her Majesty's Government:

What are their proposals for funding the Midland Metro project and other future light rail schemes.

The Minister of State, Department of Transport (The Earl of Caithness)

My Lords, it will not be possible to provide funds for construction of line one of the Midland Metro in 1993–94. The case for funding will be carefully considered next year in the light of the availability of resources. Some £50 million a year is at present available by way of government grants and credit approvals towards the funding of light rail projects.

Lord Underhill

My Lords, do the Government agree that light rail transport is environmentally friendly in so far as it helps with congestion and the relief of pollution? In the light of that, would it not be advisable for the Government to make funds available for light transport schemes, if necessary by diverting funds from costly road schemes? As funds for light rail schemes derive from Section 56 of the 1968 Act, have the Government in mind the merging of those provisions with finance for road transport so as to give local authorities freedom to determine which type of scheme they wish to adopt?

The Earl of Caithness

My Lords, the noble Lord is correct when he says that a light rail scheme can be beneficial. There are of course other ways of controlling traffic and improving congestion. With regard to the noble Lord's last point, we look forward to studying the package that is being considered in the West Midlands, but further legislation would be required to bring into effect what the noble Lord wishes.

Lord Teviot

My Lords, is my noble friend aware that the funding problem may have arisen because the precept which used to be given directly to passenger transport authorities now goes to the boroughs? The boroughs have not received money earmarked for transport. If the precept were returned to the PTAs it might help to fund light rail schemes.

The Earl of Caithness

My Lords, as I said, the taxpayer, via the Government, is spending some £50 million this year, and the figure will be roughly the same next year.

Lord Dormand of Easington

My Lords, have the Government received a request from Cleveland County Council about a light rail system for Teesside? If so, what reply has been sent?

The Earl of Caithness

My Lords, there will be no funds available for Teesside in the next financial year.

Lord Underhill

My Lords, I am sorry to intervene again, but will the Minister explain why the funds necessary for these desirable schemes are not available? That was the point of my previous question.

The Earl of Caithness

My Lords, the reason there are no funds available, although everyone would like more money, is that we are talking about taxpayers' money. We must keep a strict control on public expenditure.