§ Mr. LawrenceTo ask the Secretary of State for Transport if he will make a statement about British Rail's external financing limit for 1991–92.
§ Mr. RifkindWe have now completed discussions with the railways board about the serious financial situation that British Rail faces this year in the light of the downturn in the property market and its reduced forecasts of revenue. The Government have decided to increase British Rail's external financing limit for 1991–92 by £400 million, to a revised total of £1,522 million. This increase will be charged to the reserve, and will not therefore add to the planned total of public expenditure. Last year BR's EFL was increased in-year by £102 million, and BR subsequently overshot the revised EFL by £316 million. I am not, however, requiring BR to meet that overshoot from this year's provision, as would normally be required. I have also today told the chairman of British Rail that I have approved his proposal to invest £127 million in 188 additional Networker vehicles for commuter services in south-east London and north Kent.