HC Deb 26 July 1990 vol 177 cc403-4W
Mr. Michael

To ask the Secretary of State for Transport (1) if he will list for the last 10 years the total figure provided in public service obligation grant to British Rail by the Government, the amount and proportion of that figure spent in Wales each year, and the amount and proportion of that figure spent in South Glamorgan and Mid Glamorgan each year;

(2) how much money is to be made available to British Rail in respect of (a) Wales and (b) South Glamorgan and Mid Glamorgan during 1990–91, 1991–92 and 1992–93; what percentage of the United Kingdom total each figure represents; and what assessment he has made of the expected economic, social and environmental impact of this expenditure.

Mr. Freeman

The public service obligation grant (PSO) is paid in order to ensure the provision of essential local British Rail passenger services. It currently covers the gap between costs and revenues for BR's provincial and network SouthEast sectors. InterCity has not received grants since 1987–88. PSO grant is paid as a global sum and is not allocated to particular areas. Figures for PSO grant in respect of each of the years are given in the table.

Year Cash £ million 1990–91 Prices £ million
1980 576 1,039
1981 749 1,230
1982 817 1,258
1983 854 1,250
1984–851 853 1,190
1985–86 820 1,085
1986–87 690 883
1987–88 775 942
1988–892 456 517
1989–902 488 520
1990–913 474 474
1991–924 401 383
1992–934 382 352


1 1984–85 was a 15-month year. The figure given is the 12-month equivalent.

2The 1988–89 nd 1989–90 figures have yet to be finalised.

3Estimate, subject to review.


Mr. Bevan

To ask the Secretary of State for Transport if he will make a statement about British Rail's external financing limit for 1990–91.

Mr. Parkinson

I am pleased to announce a revised external financing limit (EFL) of £700 million for British Rail for 1990–91. This represents an increase of just over £100 million, after adjustments for the 1989–90 outturn and for other external receipts. The revised EFL includes full provision for the expenditure that BR plans to incur in the current year on safety measures, particularly those arising from the Hidden report on the Clapham Junction accident, and will also help BR to maintain its large investment programme. The net increase of £54 million above the original EFL published in the 1989 autumn statement will be charged to the reserve and will not therefore add to the planned total of public expenditure.