§ Mr. Tracey
To ask the Secretary of State for Transport what financial objectives he has set for London Transport. 
§ Mr. Norris
I have written to Peter Ford, chairman of LT, to set new medium-term financial objectives for LT to achieve in 1998–99. These replace the objectives which came to an end on 31 March 1996. The package of new objectives sets challenging but achievable targets for the continued improvement in LT's financial performance and efficiency. The objectives are as follows:
All figures are at 1995–96 prices Objective Cost per train kilometer1 Not more than £9.45 LUL gross margin2 At least £285 million Bus subsidy per kilometre3 Not more than 6.0 pence LT Buses gross loss4 Not more than £20 million Group services etc.5 gross loss Not more than £21.5 million Dial-a-Ride costs per trip Not more than £9.40 Property rental income growth To be at least as good as the average shown by the IPD index (6) on three-year following basis 1 Costs per operated train kilometre to exclude depreciation, renewals, restructuring and PFI costs. 2 LUL gross margin before depreciation, renewals, restructuring and PFI costs. 3 Net subsidy per operated bus kilometre before depreciation, renewals, restructuring and PFI costs. 4 LT Buses gross loss before depreciation, renewal, restructuring, and PFI costs. 5 LT Group Services, plus Victoria coach station, unit for disabled passengers, PASS and LT museum. 6 IPD is the Investment Property Databank index.