§ 24. Mr. Sparksasked the Minister of Transport by how much he estimates that the revenue from revised railway passenger fares will fall short of the cost of providing and operating railway passenger services; and to what extent the deficiency will be a burden upon freight charges.
§ Mr. Lennox-BoydOutside the London area receipts from passenger traffic will meet the working expenses incurred specifically for such traffic, and leave a margin of about £7½ million a year towards the expenses which are joint to both passenger and goods traffic. These joint expenses amount to about £70 million a year. The British Transport Commission, while unable to allocate these, are satisfied that the sum of £7½ million a year is substantially less than would be an appropriate contribution. Nor do passenger receipts provide for any contribution towards central charges, reserves, and liquidation of past deficiencies, for all of which a further £40-£50 million is required.
Inside London passenger receipts by road and rail will meet the necessary working expenses and make some contribution towards central charges, reserves and liquidation of past deficiencies, but this falls short by £6 million a year of what the Commission judge to be reasonable.