§ Dr. Twinnasked the Secretary of State for Transport what progress has been made towards decentralising the operations of London Regional Transport as required by the London Regional Transport Act 1984; and if he will make a statement.
§ Mr. RidleyI have given my approval under section 4 of the Act to proposals submitted by London Regional Transport for the formation by them of two companies, London Buses Limited and London Underground Limited to operate London bus and underground services. These companies will be incorporated as wholly-owned subsidiaries of LRT and will commnce trading on 1 April 1985.
At the same time, under its general powers conferred by section 3(1) of the Act, LRT will be establishing a separate wholly-owned subsidiary, LRT Bus Engineering Limited to provide bus engineering and overhaul facilities.
LBL will be able to bid for bus service contracts with LRT in competition with other suppliers, as has already started. BEL will be required to operate without subsidy as soon as possible and to provide its services to LBL and other operators in competition with other suppliers in the market.
I believe that the establishment of these three companies is a major step towards lower costs, improved efficiency and better value for money for London's public transport passengers. It represents a milestone of achievement in the evolution of LRT.