§ Mr. Ron Lewisasked the Secretary of State for the Environment whether he will make a further statement on the British Railways Board's freight business.
§ Dr. GilbertOn 24th July 1975 I told the House that the Government had agreed to pay grant to the British Railways Board to support the rail freight business in 1975 while the Board carried out a searching review of its freight activities with the aim of eliminating as quickly as possible the losses which were being incurred.
The initial stages of the Board's review have shown that the elimination of the deficit will be a major task, involving the examination from first principles of the Board's strategy for freight. This reappraisal is being treated as a matter of first priority by the Board and is well in hand. The results will be applied as they become available.
Final decisions on future freight strategy will depend on the outcome not only of the Board's studies but of the current transport policy review, but the need for economy is so great that I have asked the Board to make substantial progress towards phasing out the loss this year and next, and to consider both the 798W short- and the long-term implications of eliminating it completely in 1978.
I have, therefore, informed the Board that grant in respect of freight losses in 1976 will be limited to £60 million at most. Estimates for this grant will be laid before the House as soon as possible.