§ Mr. Bradleyasked the Secretary of State for the Environment what directions he has given to the Railways Board under Section 3 of the Railways Act 1974.
§ Mr. MulleyMy right hon. Friend has today directed the British Railways Board to operate a railway passenger service that will continue to provide a public service, from 1st January 1975 onwards, which is comparable generally with that provided by the board at present.
This direction has been given under Section 3 of the Railways Act 1974, which also empowers my right hon. Friend to make payments to the board arising from the imposition of this obligation. This will mean that the board will be able to apply to be compensated for those costs of operating its entire railway passenger system that cannot be met from relevant revenues.
The compensation is offset by revenue from fares, payment by passenger transport executives, local authorities or others for services required by them, and receipts from various activities related to carrying passengers by rail. It also takes account of the cost that freight services impose on the passenger system. The board's claim for compensation under these powers for 1975 is £341 million.
The direction does not imply that there will be no changes in the coverage and quality of the passenger services the Railways Board provides. In carrying out its obligation it will be able to improve the system in such ways as it may agree with me in drawing up its business plans and investment programmes. It will also be able to discontinue services where my right hon. Friend gives consent for it to do so, under the existing closure procedure. I need hardly say that any such consent would only be given after the most careful consideration of all the circumstances of each particular case.
608WI should make it clear to the House that I am not, by virtue of making these payments, taking over any managerial responsibility from the British Railways Board which will remain responsible for the efficient management of its business. I shall, however, be requesting the board to make a comprehensive statement about the operation of its passenger system in its annual report which, as hitherto, will be laid before the House. The right of users to make representations to the Transport Consultative Committees will also, of course, continue unimpaired.