§ Mr. Brothertonasked the Secretary of State for Transport whether he will make a statement about the review of rail finances referred to in the White Paper on public expenditure—Cmnd. 8494.
§ Mr. David HowellI am glad to announce that Sir David Serpell has accepted my invitation to chair an independent committee to review British Rail's finances. The other members of the Review Committee will be Mr. P. J. Butler, a senior partner of Messrs. Peat Marwick Mitchell & Co. who has already received a commission from me with regard to the 1982 rail budget which I announced on 31 March; Mr. A. Goldstein, senior partner of R. Travers Morgan and Partners, Consulting Engineers; and Mr. Leslie Bond, a director of the Rank Organisation.
Sir David brings a unique combination of experience and insights to this task, after a life of public service in the Treasury and other Departments, including service as permanent secretary of the Ministry of Transport and the 84W Department of the Environment from which he retired in 1972. Since 1974 he has served as part-time member of the British Railways Board. The board has agreed that Sir David should be released to undertake the task from the necessary position of total independence. Accordingly Sir David has today resigned from his appointment as a member of the board, which in the normal course would have extended to next September.
The terms of reference of the inquiry are—
To examine the finances of the railway and associated operations, in the light of all relevant considerations, and to report on options for alternative policies, and their related objectives, designed to secure improved financial results in an efficiently run railway in Great Britain over the next twenty years.I expect the conclusions that the committee reaches will illuminate the options that are open and so provide a firm foundation on which my colleagues and I can establish clear objectives and make justifiable financial provision for the future of the railway. I hope Sir David Serpell will be able to give me his committee's report in five to six months' time.
My action in setting up this inquiry follows from a proposal that was first made by Sir Peter Parker and the British Railways Board last year. The Government's intention to establish such a review was confirmed in the White Paper—Cmnd. 8494—on "The Government's Expenditure Plans, 1982–83 to 1984–85". As I intend to consult the board upon the conclusions before seeking to arrive with my colleagues at decisions concerning the future of the railway, I shall regard the committee's conclusions as available for publication and addressed not only to me but also to the chairman of the board, as being those of an independent inquiry on a matter of substantial public interest.