§ Mr. Foxasked the Secretary of State for the Environment what proposals he has to meet the effects of price restraint on the nationalised industries within his responsibilities.
§ Mr. PeytonAs the House knows, I have been discussing with the chairmen of the nationalised transport industries the implications for them of compliance with the C.B.I. initiative on price restraint. The financial position of both the British Railways Board and the National Bus Company, as I have reported to the House, had already given some cause for concern. Following price restraint it is evident that neither of these undertakings will be able to comply with their statutory financial obligations unless they receive special financial assistance. I have, therefore, agreed with them the356W amounts needed in 1972 to enable them to discharge these obligations—£27 million for the British Railways Board and £7 million for the National Bus Company—and that these sums will be made available by way of grant. Legislation making the necessary provision will be introduced as soon as possible. Finance by way of loan will continue to be available towards the undertakings' capital expenditures.