§ Mr. SpearingTo ask the Secretary of State for Transport what amounts were deducted from his payments to the British Railways Board in the previous year 1988–89 in respect of retrospective charges made by him against payments to it in earlier years; on what basis the deductions were made; and in what manner he publicised them.
§ Mr. PortilloA recovery of £64.5 million was made from PSO grant in 1988–89 for overpayments made in 1986–87 and in 1987–88. In both years grant was paid subject to a final adjustment once a review by my Department and British Rail of cost allocation between railway sectors was completed. British Rail made a number of accounting changes in 1988–89 and the Department recovered grant overpaid in 1986–87 and 1987–88 in accordance with the conditions of the grant settlements for those years. British Rail's annual report 131W and accounts for 1988–89, published on 5 July 1989, reported the outcome. Copies were placed in the Library of the House.