§ Mr. Chapmanasked the Secretary of State for Transport what is his policy on subsidies for urban transport undertakings.
§ Mr. David HowellThe Government share the view of their predecessors that public transport needs a reasonable level of support to keep essential services going. This is reflected in the public expenditure provision—£1.2 billion was spent last year to support public transport. London Transport, for example, received some £250 million subsidy. But there is a question of balance and value for money. Indiscriminate subsidies are not an effective way of meeting environmental and social objectives. The problem we have seen in acute form over the last year is where local authorities have embarked on low fare/high cost policies without regard to their relevance to travel needs or to their duty to maintain a fair balance between travellers and ratepayers.