§ Mrs. Peacockasked the Secretary of State for Transport what grant aid the Government will be paying British Rail in 1983 under the public service obligation.
§ Mr. RidleyThe central Government PSO grant for 1983 will be £819 million, subject to adjustment for certain factors to be settled with the board. This figure reflects the Railways Board's efforts to contain and reduce costs. I welcome the progress by the board that the grant figure represents.
Expenditure on renewal and replacement of infrastructure, and on redundancy payments will be "ring-fenced". This will help to ensure that necessary work to maintain the system and secure greater efficiency can go ahead.
Of the total grant settlement £147 million is in respect of the board's inter-city business, £266 million for the London and South East sector and £406 million for other provincial services, excluding those financed separately by the passenger transport executives.