§ Mr. WilsonTo ask the Secretary of State for Transport what is the relationship between the public service obligation grant for 1993–94 and the 1988 public service obligation directive to British Rail; and if he will make a statement.
§ Mr. FreemanPublic service obligation grant is paid to meet the cost to British Rail of compliance with the obligation laid down, which is currently defined in the Secretary of State's direction of 30 March 1988. Payments made in the years since the direction was issued have varied according to need. The Government's initial estimate of grant needed for 1993–94 is £850 million, but the amount to be paid will be settled in the light of the board's budget, still in preparation, and may be subject to subsequent adjustment.