British Railways Board (Hansard, 3 May 1978)

§ 31. Mr. Arnold
asked the Secretary of State for Transport what information he has available relating to the financial situation and accounts of the British Railways Board which is not published in the board's annual report and accounts; and if he will publish it.

§ Mr. William Rodgers
The board provides my Department with a great deal of detailed information each year on its

BRITISH RAILWAYS BOARD—FORECASTS OF PASSENGER RAILWAY BUSINESS SECTORS EXPENSES AND REVENUE AND SUPPORT REQUIREMENTS FOR 1978

Table 1—DIRECT EXPENSES AND REVENUE

Direct Expenses Revenue Contribution to Indirect Costs

£ million £ million £ million

Inter City … … … … … 193 331 138

London and South-East … … … 182 270 88

Other provincial services … … … 77 46 (31)

PTE services … … … … 51 38 (13)

503 685 226 (44)

182 (a)

TABLE 2—INDIRECT COSTS

£ million £ million

Track, Signalling and Electric Track Equipment (Freight and Passenger):

Scottish Region … … … … … … … … 45

Eastern Region … … … … … … … … 106

London Midland Region … … … … … … 115

Western Region … … … … … … … 50

Southern Region … … … … … … … 75

Headquarters and Miscellaneous … … … … … 31

Total … … … … … … … … 422

Less: Costs charged to Freight and Parcels … … … 85

Total Passenger … … … … … … 337

Other (includes Administration, Depreciation and Interest):

All Business Sectors … … … … … … … 327

Less: Freight and Parcels … … … … … … 81

Passenger … … … … … … … … 246

Total Indirect Costs (Passenger) … … … … 583 (b)

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corporate plan, investment programme and revenue budget, much of which is commercially sensitive. I could not agree to publication of all this information.

§ 57. Mr. Crawford
asked the Secretary of State for Transport when he next intends to meet the chairman of British Railways.

§ Mr. William Rodgers
I would refer my hon. Friend to my answer earlier today to my hon. Friend the Member for St. Helens (Mr. Spriggs).

§ Mr. Cohen
asked the Secretary of State for Transport whether he will make available the British Railways Board's forecast of passenger railway support requirements in 1978, as promised in the Government's response to the report of the Select Committee on Nationalised Industries on British Railways.

§ Mr. William Rodgers
I have accepted the British Railways Board's claim for passenger support for 1978 for £403 million. The information requested is as follows:
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TABLE 3—PASSENGER SUPPORTS

£ million £ million Reference to Previous Tables

Total Indirect Costs (Passenger) … … … 583 2 (b)

Less:

Net Contribution from Business Sectors 182 1 (a)

Other Income … … … … 6

188

395

Special Replacement Allowance … … … 50

Total payable … … … 445

Payment by PTEs … … … … … 42

Payment by Central Government … … … 403

Forecast Loaded Train Miles … … … 197 million

Forecast Passenger Miles … … … … 18,247 million

Notes to the tables:

1. The tables show the British Railways Board's forecast of its requirement for passenger support in 1978.

2. The board claims compensation from the Secretary of State for the financial burden of operating the passenger railway system as a public service under Section 3 of the Railways Act 1974 and EEC Council Regulation 1191/69.

3. The board's annual claim for compensation sets out the forecast costs of the passenger railway system and the forecast revenue for the coming year. The amount claimed is the difference between these costs and earnings (with minor adjustments).

4. Table 1 shows the breakdown of direct expenses and revenue for the four passenger business sectors. Direct expenses comprise train service expenses (train crews, fuel, carriage cleaning etc.), station expenses and miscellaneous expenses (for example, publicity).

5. Table 2 shows the indirect costs—that is, those not attributed to particular services or groups of services—for both passenger and freight businesses. The costs charged to freight are then deducted to give those for the passenger business.

6. Table 3 shows how the passenger support requirement is derived by deducting from the indirect costs other income and the net contribution from the business sectors and by adding replacement allowance

7. Central Government support for 1978 has been agreed by the Secretary of State in the sum of £403 million which is paid during the year in fortnightly instalments.

BRITISH RAILWAYS BOARD—FORECASTS OF PASSENGER RAILWAY BUSINESS SECTORS EXPENSES AND REVENUE AND SUPPORT REQUIREMENTS FOR 1978
Table 1—DIRECT EXPENSES AND REVENUE
						Direct Expenses	Revenue	Contribution to Indirect Costs
						£ million	£ million	£ million
Inter City	…	…	…	…	…	193	331	138
London and South-East	…	…	…	182	270	88
Other provincial services	…	…	…	77	46		(31)
PTE services	…	…	…	…	51	38		(13)
						503	685	226	(44)
								182	(a)

TABLE 2—INDIRECT COSTS
									£ million	£ million
Track, Signalling and Electric Track Equipment (Freight and Passenger):
Scottish Region	…	…	…	…	…	…	…	…	45
Eastern Region	…	…	…	…	…	…	…	…	106
London Midland Region	…	…	…	…	…	…	115
Western Region	…	…	…	…	…	…	…	50
Southern Region	…	…	…	…	…	…	…	75
Headquarters and Miscellaneous	…	…	…	…	…	31
Total	…	…	…	…	…	…	…	…	422
Less: Costs charged to Freight and Parcels	…	…	…	85
Total Passenger	…	…	…	…	…	…		337
Other (includes Administration, Depreciation and Interest):
All Business Sectors	…	…	…	…	…	…	…	327
Less: Freight and Parcels	…	…	…	…	…	…	81
Passenger	…	…	…	…	…	…	…	…		246
Total Indirect Costs (Passenger)	…	…	…	…		583	(b)

TABLE 3—PASSENGER SUPPORTS
						£ million	£ million	Reference to Previous Tables
Total Indirect Costs (Passenger)	…	…	…		583	2 (b)
Less:
Net Contribution from Business Sectors	182		1 (a)
Other Income	…	…	…	…	6
							188
							395
Special Replacement Allowance	…	…	…		50
Total payable	…	…	…		445
Payment by PTEs	…	…	…	…	…		42
Payment by Central Government	…	…	…		403
Forecast Loaded Train Miles	…	…	…	197 million
Forecast Passenger Miles	…	…	…	…	18,247 million
Notes to the tables:
1. The tables show the British Railways Board's forecast of its requirement for passenger support in 1978.
2. The board claims compensation from the Secretary of State for the financial burden of operating the passenger railway system as a public service under Section 3 of the Railways Act 1974 and EEC Council Regulation 1191/69.
3. The board's annual claim for compensation sets out the forecast costs of the passenger railway system and the forecast revenue for the coming year. The amount claimed is the difference between these costs and earnings (with minor adjustments).
4. Table 1 shows the breakdown of direct expenses and revenue for the four passenger business sectors. Direct expenses comprise train service expenses (train crews, fuel, carriage cleaning etc.), station expenses and miscellaneous expenses (for example, publicity).
5. Table 2 shows the indirect costs—that is, those not attributed to particular services or groups of services—for both passenger and freight businesses. The costs charged to freight are then deducted to give those for the passenger business.
6. Table 3 shows how the passenger support requirement is derived by deducting from the indirect costs other income and the net contribution from the business sectors and by adding replacement allowance
7. Central Government support for 1978 has been agreed by the Secretary of State in the sum of £403 million which is paid during the year in fortnightly instalments.