National Bus Company

HC Deb 17 February 1971 vol 811 c482W

151. Mr. Awdry

asked the Secretary of State for the Environment how he proposes to finance the capital requirements of the National Bus Company.

Mr. J. H. Osborn

asked the Secretary of State for the Environment what further arrangements has he now made for the financing and funding of the National Bus Company.

Mr. Peyton

Largely through factors outside its control 1970 was a bad year for the National Bus Company as it was for most bus operators. It had to face the consequences of two large wage settlements, increased restrictions on drivers' hours and local industrial action, as well as the long-term decline in passenger traffic. The result was an operating loss of not far short of £4 million.

At my request, the company is pressing ahead with the necessary action to restore viability largely in 1971 and fully in 1972, in accordance with its statutory duty and to comply with the financial target laid down last year.

Meanwhile, after an examination by consultants, the Government have agreed to advance to the company under the Transport Act, 1968, loans of up to £6 million towards its capital expenditure in 1971.