§ Mr. Iain Millsasked the Secretary of State for Transport whether he will make a statement about British Railways loss of passenger income in the current year.
§ Mr. David HowellI have reviewed the serious effect of the exceptional deterioration in rail passenger revenues for 1981. In recognition of this I agreed to consider, quite exceptionally, a revised passenger service obligation grant claim in mid-year. I have now decided to accept the British Railways Board's revised claim for PSO grant for 1981 in the sum of £754.7 million at outturn prices. This increase of £110.4 million over the origional accepted claim, which was announced to the House on 25 March 1981, compensates the board for the reduction in passenger revenue from that forecast when that original claim was accepted. No additional provision has been made for any increase in costs.