§ Mr. Bradleyasked the Minister of Transport what estimate he has made of the likely cost to municipal transport undertakings, including Leicester city transport, of the Government's decision to terminate the bus grant in four years' time; what effect this will have on fares and services; what action he envisages in this regard, if any; and whether he will make a statement.
§ Mr. FowlerIt was the last Government's intention to phase out new bus grant over a five-year period after the present powers expired in 1980. I announced on 1 November that I saw no reason to dissent from the decision to phase the grant out and this will be achieved in stages by 31 March 1984. Operators will therefore have time to review bus purchasing and maintenance policies and to look for ways of improving efficiency and reducing costs. Fares and service levels will depend on how successful operators are in achieving this as well as on other factors such as wage and fuel costs and revenue support.