HC Deb 22 March 1989 vol 149 cc594-5W
Mr. Hanley

To ask the Secretary of State for Transport what objectives he has given Mr. Newton on taking up his post as chairman of London Regional Transport.

Mr. Paul Channon

I have today sent the following letter to Mr. Newton setting his initial remit.You take up your position at a time when London Regional Transport faces a number of major challenges. First, and the highest priority, is to carry through the actions needed following Mr. Fennell's report on the King's Cross tragedy. A vigorous start has already been made on this vital task. Second, there is a need to provide for the projected continuing increase in traffic particularly on the Underground, and for the growing public transport needs of Docklands. Third, there is the need to improve the quality of services and the security afforded to the traveller. Fourth, it is necessary to complete the effective restructuring of London Buses in order to improve performance and prepare for deregulation in the early 1990s. The Board under your chairmanship will tackle these tasks in the light of LRT's general statutory and financial duties, which include the duty to have due regard to efficiency, economy and safety of operation. We need a clear long term strategy and a framework of medium term objectives that I would settle with you. For this, I should like you to review LRT's plans in all areas, and put to me by the end of June 1989 your proposals for a management, investment and financial strategy which aims to give London safe and reliable rail and bus services; provides good value for money; and, so far as possible, transfers costs from the taxpayer to the passenger and other beneficiaries. As part of establishing the objectives I would like to agree with you a set of quality of service targets for the Underground. You should know that the present provision for LRT in the Government's expenditure plans is for external finance of £287 million in 1989–90 and for the following levels of investment:

£ million
1989–90 486
1990–91 540
1991–92 461

I understand that the London Regional Transport board has today appointed Mr. Newton as chairman of London Underground Limited and Mr. Telford Beasley as deputy chief executive of London Regional Transport. I welcome these appointments.