London Regional Transport Bill

HC Deb 27 February 1984 vol 55 cc20-1W

32. Mr. Tony Banks

asked the Secretary of State for Transport whether, if the London Regional Transport Bill becomes law, he intends to impose the same financial restraints upon London Regional Transport as he has attempted through his recent transport supplementary grant settlement to oblige the Greater London council to impose on London Transport.

Mrs. Chalker

The hon. Member misunderstands the nature of the TSG system. The level of expenditure accepted for TSG is what the Government consider it justified to grant-aid out of monies raised from national taxpayers.

In the settlement announced last December, the level of revenue support expenditure by the GLC accepted for grant matched what could have been readily achieved had the GLC not chosen to cut London Transport fares substantially the previous May, to reduce them further in real terms by holding them below the level of inflation, and to add unnecessarily to LT costs. Accepted expenditure for public transport capital investment was over 12 per cent. higher than the previous year.