30. Mr. Geoffrey Wilsonasked the Minister of Transport what steps she is taking to reduce the deficit of British Railways.
§ Mrs. CastleThe Board are intensifying their efforts to reduce the deficit within the terms of reference given them under the Transport Act, 1962. I am however not seeking to renew my powers under this Act to pay deficit grants. Instead the Transport Bill will reorganise the finances of the Railways Board, on the lines recommended in the Joint Steering Group which was chaired by my hon. Friend the Member for Aberavon (Mr. John Morris). The Board will in future have a realistic opportunity to break even with the help of my proposed grants for socially necessary services.
§ 43. Mr. J. H. Osbornasked the Minister of Transport in view of the lack of accuracy in the past in forecasting the railway deficit, what special precautions she is taking in her proposals to write off part of the capital of British Railways.
§ Mrs. CastleMy proposals are founded on an intensive study of railway finances by the Joint Steering Group whose report I presented to Parliament last year in Cmnd. paper 3439.