§ Mr. Charles Wardleasked the Secretary of State for Transport whether he has settled the amount of the public service obligation grant to be paid to the British Railways Board from January 1984 to March 1985.
§ Mr. RidleyI am glad to announce that I have accepted the board's claim for central Government PSO grant for the 15-month period 1 January 1984 to 31 March 1985 at £1,051.8 million, subject to adjustment for certain factors agreed with the board.
The claim normally covers a 12-month period. British Rail is however, changing its annual accounting period from a calendar to a fiscal year basis with effect from 1 April 1985. I have therefore agreed that the grant for 1984, which I announced on 7 June 1984, should be extended to cover the 15-month period.
The claim is £36.2 million less than the cash limit of £1,088 million which I announced on 6 December. The claim continues to reflect the board's progress towards achieving the 1986 grant target.
Of the total grant claim, about £210 million is in respect of the board's inter-city business, £338 million for the London and south-east sector and £504 million for provincial services, excluding those financed separately by the passenger transport executives.