§ Mr. McCrindleasked the Secretary of State for Transport if he is satisfied that British Rail will be able to meet its financial targets in the current financial year; and if he will make a statement.
§ Mr. David MitchellI have set the board the target of reducing its call on PSO grant to £635 million (in 1983 245W prices) in 1986–87. The freight and inter-city businesses have been set the target of earning a 5 per cent. rate of return on their assets, on a current costs accounting basis, but excluding interest charges, by 1988–89. I expect the board to make progress towards these targets during this financial year. I set a cash ceiling on the current year's PSO grant of £820 million (equivalent to £740 million at 1983 prices); I am pleased to say that I was able to agree a grant settlement £7 million below that ceiling.