§ Mr. Michael Heseltineasked the Minister of Transport what agreements have now been reached between his Department and the National Bus Company with respect to the financing of loss-making services operated by the company.
Mr. Bob BrownIn general this is a matter which falls within the normal management responsibilities of the National Bus Company. I understand that it intends to continue to cross-subsidise loss-making services from the results of more profitable ones as has been normal in the bus industry for many years. Its forward estimates of losses on rail replacement bus services and on London Country services are being taken into account in settling its financial target.
§ Mr. Michael Heseltineasked the Minister of Transport what are the financial objectives laid down for the National Bus Company; and if he will publish the reconciliation between those objectives and the financial accounts of the component parts of the National Bus Company in the last relevant year.
Mr. Bob BrownThe statutory financial duty is set out in Section 41(2) of the Transport Act, 1968. The translation of this into a specific financial target is still under discussion. We will consider how best the relationship of this target to the financial results of previous years can be demonstrated.