HC Deb 24 October 1988 vol 139 cc102-3W
38. Ms. Primarolo

To ask the Secretary of State for Transport if he will make a statement on the financing of light rapid transit railway developments.

Mr. Portillo

I want to see the maximum participation by the private sector in the development of urban light railways, and I am encouraged that the private sector has taken the initiative in proposing a light rail project in Avon. Government grant will normally be paid only when the railway generates sufficient external benefits, which cannot be captured through revenues, as was explained in the Government's recent response to the report by the Transport Select Committee on the financing of rail services. I would normally expect any such grant at least to be matched by a contribution from the local authorities, who have general duties in relation to public transport in their areas.