London Regional Transport (Hansard, 18 July 1985)

§ Mr. Ridley

Shortly after the establishment of London Regional Transport on 29 June 1984, I set its chairman, Dr. Keith Bright, objectives in four crucial areas—reducing costs and the call on taxpayers' and ratepayers' money; improving management through the estabishment of smaller and more efficient units; involving the private sector; and improving services within the resources available. I am glad to say that, in the course of only 12 months, LRT has set in train radical changes in the way its business is managed, as a result of which it has made substantial progress towards these objectives.

In its first year, LRT expects to exceed its target of reducing real unit costs by 2½ per cent. per annum. This is good news for Londoners. LRT's achievement here 215W means that revenue support will be reduced in 1985–86 by £60 million compared with the GLC's budget for 1984–85 without excessive increases in fares or major cuts in services. This will enable over £40 million more to be made available in grants for capital projects in the current financial year than the GLC proposed for 1984–85. LRT has made a good start towards achieving its task of halving the level of revenue support, from £190 million in 1984–85 to £95 million in 1987–88.

LRT has now formed subsidiary companies for its bus and underground businesses and for bus engineering. This will increase management accountability and improve LRT's cost-effectiveness. The LRT Act also required LRT to invite tenders for the provision of services on its behalf. An early example of this—the tendering of 12 bus routes—will reduce by £¾ million the annual subsidy bill of £4 million for these routes, while annual mileage operated on the 12 routes will be increased by 2½ per cent. LRT has recently announced the tendering of about 40 more bus routes.

In our proposals for LRT, we made clear that we wanted to see closer co-operation with British Rail. I set up the London passenger transport group last July, with the chairmen of LRT and BR, to keep a regular watch on this. The decision to proceed with capitalcard—the combined travelcard for LRT bus, underground and BR rail services in Greater London—was an early result. Capitalcard has been a resounding success. Over 100,000 users are expected by the end of the year.

A further example of increased co-operation between LRT and BR is demonstrated in their proposals for improvements to interchanges. A programme of schemes is being developed, designed to help passengers changing from one public transport mode to another.

In my objectives for LRT, I asked it to keep in mind the needs of disabled people. It has set up a new unit to work full-time on initiatives for disabled passengers. Its recent statement, "Transport for disabled People: The LRT approach", shows how seriously it is taking its responsibilities towards disabled people. The new buses to be ordered by London Buses Ltd. from 1986 onwards will be the first to incorporate new design features which will improve access for elderly and less mobile people.

The Government's recent decision to endorse LRT's proposals for investment in a new ticketing system for London's underground will save money and streamline the operation of the system, making it more convenient for passengers.

The past year has also seen the letting of the contract for the docklands light railway, an important component in the strategy for revitalising London's docklands. I look forward to seeing the railway in operation by July 1987.

I am pleased with the excellent start LRT has made in its first year and I am confident that this progress will be maintained.