§ Mr. David Shaw
To ask the Secretary of State for Transport whether he will make a statement on the financial position of London Transport.
§ Mr. Rifkind
The Government have had discussions with London Transport about the financial difficulties it has encountered in 1990–91. The Government have concluded that the appropriate course is to increase London Transport's external financing limit for 1990–91 by £55 million. At the same time, an increase of £7.55 million is necessary to cover London Transport's expenditure in the current year on east-west crossrail, and costs associated with safeguarding the Chelsea-Hackney line proposal. These increases will change London Transport's 1990–91 EFL from £448.00 million to £510.55 million. This is within the forecast outturn for the planning total published in the statistical supplement to the 1990 autumn statement.
Urgent discussions with London Transport are continuing, about their budget for 1991–92. Pending the outcome of those discussions, London Transport's EFL and capital expenditure ceilings will remain at the levels previously announced.