§ Mr. Peter Fraserasked the Secretary of State for Scotland if he will make a statement about a medium-term financial target for the Scottish Bus Group.
§ Mr. YoungerAfter consultation with the Scottish Transport Group I have now set a medium-term target for the Scottish Bus Group. The target requires the SBG to make a current cost operating profit amounting to an average rate of return of 4½ per cent. per annum of net fixed assets at current cost over the period to 31 December 1983.
The new target will require the SBG to earn the required rate of return on its investment after taking into account receipt of new bus grant and it supersedes the interim financial target for 1980 which I announced in December 1979.
The SBG will now be expected to make a surplus of £4.5 million before taxation and interest payments in 1980.
I have also revised the 1980–81 external finance limit of the Scottish Transport Group. The new level of £12 million takes into account my increased assistance to Caledonian MacBrayne, increased local authority grants to the Scottish Bus Group and the implication of the revised 1980 SBG financial target. This increase is being met from the unallocated contingency reserve within the planned total for public expenditure.