HC Deb 18 January 1980 vol 976 cc880-1W
Mr. Snape

asked the Minister of Transport if he will list the current financial controls on British Railways, the dates at which they were introduced, and their purpose.

Mr. Fowler

Two financial controls over British Railways Board are common to all nationalised industries. These are the annual limit on external finance introduced in 1976 and the ceiling on total investment which has been in existence since the early 1960s. Since 1975 the board has been required to keep the call on public support for the passenger railway within an annual cash ceiling.

It is also subject to limits set by Parliament on cumulative totals of grant and of borrowing. This limit on passenger grant in respect of the public service obligation was introduced in the Railways Act 1974.

The present control on borrowing was introduced in the Transport Act 1962 which also empowers me to set a limit on the board's temporary borrowing and to specify the terms of loans. That Act also requires the board to get by consent to lend money or guarantee a loan, or to acquire securities in a body corporate.

These various controls form part of the Government's overall arrangements for planning and controlling public expenditure and monitoring public liabilities. They are also designed to ensure accountability to Parliament for the use of public funds.