§ Mr. John H. Osbornasked the Secretary of State for Transport what information he has about the revenue and 418W expenditure incurred by the South Yorkshire county council on its cheap transport policy, the size of the deficit, the amount of this to be met by the transport element of the support grant, and the amount that will fall on ratepayers in the current year; and if he will make a statement.
§ Mr. FowlerOver the past four years South Yorkshire has spent over £100 million on subsidising local bus services quite apart from payments for old people's concessionary fares. I understand that it has budgeted to spend another £47.1 million this year in order to push up to 60 per cent. the proportion of its bus costs met from public funds. The last Government took the view that South Yorkshire's circumstances did not warrant pre-empting such a large slice of the limited transport resources nationally available to all counties. I entirely share that view. I accepted in the 1981–82 TSG settlement for South Yorkshire £7.3 million for public transport revenue support at November 1979 prices, equivalent to £9.5 million at cash limited outturn prices comparable with the county's budget. However, I am very concerned about the burden now being placed on South Yorkshire ratepayers whose rate precept has almost doubled to 57p between 1978–79 and 1980–81. The cost of the county's policy is equivalent to more than £30 on the typical domestic ratepayer's bill and a £14 million rates burden on local industry. This can only have a damaging effect on job prospects in the area.