§ Mr. Robert Atkinsasked the Secretary of State for Transport when he is to announce limitations on the precept levels he is proposing for the new joint board passenger transport authorities for 1986–87; and if he will make a statement.
§ Mr. RidleyI am today informing the passenger transport authorities of the maximum precept levels I propose to prescribe for 1986–87.
Following my determination of expenditure levels for each PTA on 16 September, all the authorities submitted applications for redetermination under section 3(4) of the Rates Act 1984. My decisions on redetermination have been made in the light of the applications and of further information provided by the PTAs.
In their applications the PTAs have drawn my attention to their view that they may incur expenditure in 1986–87 as a result of staff becoming surplus to requirements. They have also represented to me the problems in estimating such expenditure in advance of the submission of transfer schemes under section 59 of the Transport Act 1985 and the outcome of the registration of bus services during the first half of that year. Accordingly, I have decided that for the year 1986–87 alone these amounts should be included within redetermined expenditure levels. Within each redetermined expenditure level I have distinguished an amount which, on the basis of the information available, including that put forward by the authorities, appears to me to be sufficient in respect of expenditure on severance costs which the PTAs have suggested the Passenger Transport Executive is likely to incur in 1986–87. These amounts are included within redetermined expenditure levels, but I have made clear to the authorities my view that if they prove in the event not to be required, I consider that any excess should be carried forward to reduce the burden on ratepayers in 1987–88.
The relevant amounts for each authority are as follows:
405WThese amounts are in my view sufficient to enable the authorities, if they so wish, to continue funding existing concessionary fare schemes in their areas provided they reduce levels of revenue support in line with my advice to passenger transport executives under the Transport Act 1983.
I have asked the authorities to inform me by 15 January whether they accept the proposed maximum precept levels.