§ Mr. MossTo ask the Chancellor of the Duchy of Lancaster when the Monopolies and Mergers Commission report on the British Railways board's Provincial service will be published.
§ Mr. MaudeThe report is published today.
The commission expressed satisfaction with the remarkable improvement in the sector's performance, and made 42 recommendations aimed at bringing about further improvement. It completed its report on 29 September 1988, within the six months allowed by the Secretary of State.
The commission found that Provincial's initial strategy on formation in 1982 was to give priority to cost-cutting. Efforts to increase traffic came later as its organisation and particularly its marketing developed. The result had been a significant reduction in Provincial's call on Government grant. The commission found this very encouraging and a clear endorsement of the concept of sectoral management of the railway business. However, it saw the need for a closer look at individual services and believed that Provincial should now pay more attention to the quality of service it provided.
Evidence submitted to the commission by local authorities and other groups showed a strong desire for improvement in Provincial's services both in quantity and quality. The commission said there could be substantial benefit in a closer local involvement in planning and paying for such services. It accordingly recommended that the board should discuss with Government Departments and other relevant bodies the case for transferring financial responsibility for supporting certain urban and rural services to local government.
The commission was glad to note the action taken by the board to initiate reform of the collective bargaining machinery following the recommendations in the Network SouthEast report. It found that there was scope for significant further productivity gains and made a number of recommendations to this end.
The commission also found that the board, in responding to competition from bus and coach services, was not abusing any monopoly situation existing in its 303W favour. Nor was it in relation to any matter falling within the terms of reference pursuing a course of conduct which operated against the public interest.
British Rail will be producing a preliminary response to the commission's findings within three to four months, in the light of which my right hon. Friend the Secretary of State for Transport will make a statement.