§ Mr. Squireasked the Secretary of State for Transport if he will make a statement on the British Railways Board PSO cash ceiling for 1987–88.
§ Mr. David MitchellFor 1987–88, the cash ceiling on PSO grant (which, for this year, still includes the inter-city sector) will be £809 million. It allows for increased expenditure on investment to improve quality and for additional expenditure to improve efficiency which will yield productivity savings in future years. It also includes a technical change in the method of funding investment in the grant-aided railway which will have the effect of reducing the board's borrowing requirement.