§ 32. Mr. Beithasked the Secretary of State for Transport whether the Government's projections for public expenditure on transport allow for support by local authorities to retain what remains of the rural bus service network at projected future costs.
§ Mr. HoramThe future level and distribution of local transport expenditure is a key issue which we are considering in the context of our Consolidation Document on Transport Policy.
§ Mr. Fryasked the Secretary of State for Transport (1) how many of the figures for "Passenger Subsidies—other" in Cmnd. Paper No. 6393 are attributable to the bus industry;
(2) what are his latest estimates of the cost of bus industry revenue support for 1976–77;
(3) by how much the cost of bus industry revenue support for 1976–77 is likely to exceed PESC provision in Cmnd. Paper No. 6393; and what supplementary arrangements he has made to deal with this.
§ Mr. William RodgersCmnd. 6393 provided £112 million—revalued to November 1975 prices—under the heading "Passenger Subsidies—other" for bus, ferry and underground revenue support in England and Wales in 1976–77. No specific provision was identified for ferry and underground services. County councils' recent transport policies and programmes (TPPs) include estimates of248W revenue support expenditure in 1976–77 of £165 million, suggesting an overspend of £53 million. I know that some authorities are contemplating fares increases which would reduce the amount of the overspend. It is likely in any event to be completely offset by savings on other items of local transport expenditure.
§ Mr. Fryasked the Secretary of State for Transport what has been the annual cost to public funds of new bus grants since 1970–71, at 1975 survey prices.
§ Mr. William RodgersExpenditure on new bus grant since 1970–71—at 1975 survey prices—was as follows:
1970–71 … £10.36 million 1971–72 … £17.87 million 1972–73 … £29.81 million 1973–74 … £27.13 million 1974–75 … £22.95 million 1975–76 … £29.80 million The rate was increased from 25 per cent. to 50 per cent. in November 1971.
Grant for 1976–77 is subject to a cash limit of £42.25 million, and this provision is intended to allow for about the same level of grant in real terms as in 1975–76.
§ Mr. Fryasked the Secretary of State for Transport by how much he expects local authorities to reduce their expenditure on road maintenance in order to finance increases in expenditure on bus subsidies and concessionary fares.
§ Mr. William RodgersLocal authorities have discretion to decide on the distribution of their expenditure on local transport. Returns for England and Wales show that in 1976–77 their expenditure on road maintenance is likely to be somewhat below £400 million—at November 1975 prices. This is broadly in line with the provision in Cmnd. 6393, but it is too early to predict accurately the final outturn.