West Midlands Passenger Transport Executive

HC Deb 16 June 1978 vol 951 cc692-3W

Mrs. Wise

asked the Secretary of State for Transport whether, in view of the decision by the West Midlands Passenger Transport Executive to increase fares by an average of over 15 per cent., he will withdraw its subsidy if it goes ahead with this flouting of the Government's anti-inflation policy.

Mr. Horam

No direct Government grant is given to the Executive. Financial assistance is the responsibility of the West Midlands County Council whose total transport expenditure, including that on revenue support, is assisted by the rate support grant and the transport supplementary grant—TSG. These are block grants, settled annually and not specific to individual items of expenditure. But I have no evidence to suggest that the county is not going to spend the £12 million which it proposed, and which was accepted, for TSG for revenue support purposes for 1978–79. We have made the county council aware of our views about the importance of meeting future reductions in support without resort to fare increases above the rate of cost inflation in the industry.