§ Mr. Butcherasked the Secretary of State for Transport what progress he has made in setting medium-term financial targets for the National Bus Company
§ Mr. FowlerI have today informed the National Bus Company that I have set it a target of achieving a current cost operating surplus, before interest, of £18.5 million at 1980 outturn prices by 1985.In setting this, I have taken account of the company's present trading position, the opportunities for improvement and the desirability that it should earn a sufficient surplus to cover the cost of capital employed.
The National Bus Company expects to have made a current cost operating loss in 1980 of the order of £18 million and already has in hand vigorous action to improve their financial position. I am discussing with the chairman what further steps it will need to take to improve performance and efficiency and cut costs to ensure that steady progress is made. The target the Government have set will mean that the NBC, like other operators, must fully cover its costs.
I have also set the company a performance aim for 1981 in terms of a reduction in operating costs per vehicle mile of 3 per cent. in real terms. That is designed to focus 201W management action in 1981 on the day-to-day costs of operation and I shall be reviewing it with the NBC at the end of the year.