§ Mr. Spearingasked the Secretary of State for Transport by what means London Regional Transport auditors will certify expenditure totalling £37 million in 121W relation to unfunded liabilities of London Regional Transport, Official Report, 19 February, column 945, as being due for payment prior to 31 March.
§ Mrs. ChalkerThese liabilities will appear in LRT's accounts for 1984–85, according to LRT's latest forcasts. The accounts will be certified by LRT's independent auditors in the normal way. The liabilities represent future charges on the business, for which it is standard accounting practice to make provision, which will have accrued by the end of this financial year as a result of past transactions or management decisions.
§ Mr. Spearingasked the Secretary of State for Transport if he will list for each of the five categories which make up the total of £37 million of accrued unfunded liabilities of London Regional Transport for the current year, Official Report, 19 February, column 945, the principal expenditure, together with the reasons why they require payment prior to 31 March.
§ Mrs. ChalkerThe items are as follows:
- £21 million provision for voluntary severance payments.
- £ 6 million provision for outstanding insurance claims.
- £ 4 million provision arising from abortive work on the Jubilee Line.
- £ 5 million provision for unpaid development land tax.
- £ 1 million provision for land compensation claims.
- £37 million
The liabilities are as assessed in LRT's latest business forecasts, which may be subject to change. They do not fall to be paid in 1984–85 but will have accrued by the end of the financial year as a result of past transactions or management decisions. It is standard commercial accounting practice to make provision for liabilities.