§ Mr. Peter Bottomleyasked the Secretary of State for Transport whether he has now decided on the future financing of the Port of London Authority and the Mersey Docks and Harbour Company.
§ Mr. David HowellI have now considered the corporate plans put to me by the PLA and MDHC earlier this year, and the comments of the accountants—Price Waterhouse and Co, in the case of the PLA, and Peat, Marwick, Mitchell and Co in the case of the MDHC. These show that, in the light of forecasts of future traffic and profitability in the two ports, substantial further manpower reductions will be needed over the next few years.
I have taken this fully into account in the Transport (Finance) Bill, published today, which increases the limit on financial assistance to the two port authorities by £200 million. This figure also reflects the fact that the Government will need to provide some further assistance for essential capital expenditure and grants towards the cost of keeping these two port authorities going pending 205W a return to profitability. But I have made clear to both authorities the intention that there should be no grants for deficits beyond the end of 1982. Both authorities will be required to produce detailed action plans to meet these objectives. Furthermore, I have told them that, although I may be prepared to help them meet some short-term debt, I cannot agree at present to the major capital reconstructions that they have requested.