§ Mr. Haywardasked the Secretary of State for Transport if he has yet settled the amount of the public service obligation grant to be paid to the British Railways Board in 1984; and if he will make a statement.
§ Mr. RidleyI am glad to announce that I have accepted the board's claim for central Government PSO grant for 1984 at £837.3 million, subject to adjustment for certain factors to be settled with the board.
The claim is £25 million less than the cash limit for 1984 which I set last December, and £18 million less than the board's final claim for 1983. It includes £55 million of transtional expenditure on reducing the underlying cost of running the railway. I welcome the evidence this gives of the progress the board is making to improve the cost effectiveness of the railway and the value for money it represents to customers and the taxpayer.
Of the total grant settlement, about £162 million is in respect of the board's inter-city business, £272 million for the London and south-east sector and £403 million for provincial services, excluding those financed separately by the passenger transport executives.