HC Deb 20 November 1978 vol 958 cc442-3W
Mr. Ovenden

asked the Secretary of State for Transport what is the estimated level of financial support to British Railways in 1978–79; what proportion of operating costs this represents; and how these figures compare with 1973–74.

Mr. William Rodgers

The financial support payable to the British Railways Board for the calendar year 1978 is estimated to be about £458 million, excluding pension funding. This represents about 28 per cent. of the estimated railway operating expenses. In the calendar year 1973 the support paid was £181 million—£385 million at 1978 prices—representing 26 per cent. of railway operating expenses.

Mr. Ovenden

asked the Secretary of State for Transport what discussions he has had with British Railways about the level of Government financial support in the context of the British Railways Board's application to the Price Commission for approval of fare increases; and if he will make a statement.

Mr. William Rodgers

The chairman is aware of my views that fare increases should be consistent with the Government's policy on support to the passenger railway as set out in the White Paper on transport policy—Cmnd. 6836.

Mr. Ovenden

asked the Secretary of State for Transport what is his estimate of the increase in Government financial support which would be necessary to reduce the average rise in British Railways fares to 5 per cent. from the figure currently proposed for January 1979 and now under investigation by the Price Commission.

Mr. William Rodgers

About £25 million for a full year.

Mr. Ovenden

asked the Secretary of State for Transport (1) what is his estimate of the effect on fare levels since 1973–74 of his policy of increasing the level of financial support to British Railways;

(2) what is his estimate of the effect on British Railways' fare levels since 1973–74 of his policy of increasing the proportion of operating costs covered by Government financial support.

Mr. William Rodgers

The fares increase since 1973 would undoubtedly have been higher and services would have been reduced but it is not possible to describe the precise outcome since many factors enter into the way the Railways Board achieve a balance between costs and revenues.