§ Mr. Denzil Davies
To ask the Secretary of State for Transport (1) what was the total amount of subsidy paid in the last financial year to Network SouthEast;
(2) what was the total amount of subsidy paid in the last financial year to British Rail in respect of its operations in Wales.
§ Mr. Freeman
Subsidy is paid by the Government to the British Railways Board in the form of the public service obligation grant under EC regulation 1191/69 and section 3 of the Railways Act 1974, which compensates BR for maintaining loss-making passenger services, and level crossing grant under EC regulation 1192/69. The BR board received £498.6 million of PSO grant and £19.7 million of level crossings grant in the last financial year, 1989–90. Both grants are paid as totals to the board and the Government do not specifically allocate them between sectors or geographical areas, but some £95 million of the PSO grant related to Network SouthEast and the rest to the provincial sector.