§ Mr. Dykesasked the Secretary of State for Transport if he will introduce new legislation on public transport in London and the conurbations.
§ Mr. David HowellI have been concerned with two major issues on public transport over the past year. One is what level of subsidy is reasonable, the second is whether the organisation is right.
The Government believe that subsidy is essential to maintain the key public transport systems in our cities. But it must be wisely and thoughtfully spent, based on the real needs for transport in their areas rather than the dictates of dogma and it must have regard to the resources available and who is to provide them.
Although the legislation on subsidy has worked reasonably well in the past, it has not prevented excessive subsidies by the metropolitan county councils which are a significant part of total overspending by local authorities this year. It is already clear from the details of the draft transport plans that are beginning to emerge that some authorities may still be contemplating unrealistic subsidy policies for next year. These could lead to legal challenge from ratepayers, uncertainty and damage for the transport undertakings concerned and those who work in them and confusion and disruption for the general travelling public. I therefore intend to take an early opportunity to introduce legislation to ensure greater certainty and stability.
The objectives are to improve efficiency, obtain better value for money and maintain a reasonable balance between travellers, ratepayers and taxpayers. The proposal will define the basis for the payment of subsidies both in London and the metropolitan counties. Powers and duties will be re-defined to make it clearer what subsidies are buying, to require authorities to review the structure of the transport executives, and to allow greater scope for private 418W sector competition. In reaching their decisions on subsidies, authorities will have to have regard to guidance which I shall give them on what is an appropriate amount. I shall be issuing advice to local authorities on how the proposals affect their current plans and the appropriate action this autumn.
I am still considering whether more far-reaching changes in the arrangements for public transport are needed; and will examine carefully the report of the Select Committee on Transport which I understand will be published in the next few days. In the meantime, the legislation will include reserve powers which will enable me to step in if the effect of GLC irresponsibility continues to be damaging to London's transport.