§ Mr. Sternasked the Secretary of State for Transport what level of public service obligation grant will be available to British Rail for 1986–87.
§ Mr. David MitchellIn October 1983 we set the British Railways Board the object of reducing, over three years, its requirement for public service obligation grant to £635 million in 1983 prices. This target is now £736 million at 1986–87 prices, so I am setting the board a cash ceiling for this grant in 1986–87 of £736 million to reflect that. Meeting the target will have meant reducing the level of grant by more than one quarter, and this reflects the considerable progress which Sir Robert Reid, his board, and railwaymen have made to improving the financial effectiveness of the railway.