§ Mr. GallieTo ask the Secretary of State for Scotland if increased funding will be made available to Strathclyde regional council in 1994–95 for the additional costs incurred as a result of the restructuring of the railways and implementation of the new track and rolling stock charging system; and if he will make a statement.
§ Mr. LangUnder the new railway charging systems introduced on 1 April 1994, we expect the cost to Strathclyde regional council of maintaining the existing level of Strathclyde passenger transport executive-supported rail services to increase. My right hon. Friend the Secretary of State for Transport has given an undertaking that the additional costs will be met in full by a transfer of funds from the Department of Transport through the Scottish Office to Strathclyde regional council. Payment will be subject to Strathclyde passenger transport executive and British Rail having made the necessary contractual arrangements. The funds will be in addition to Strathclyde's local government finance settlement and will be disregarded for capping purposes.
Parliamentary approval for this new service will be sought in a summer supplementary estimate for the training programmes, roads and transport services and industrial support, Scotland vote, class XIV, vote 3. Pending that approval, urgent expenditure estimated at £30 million to cover payments in the early part of the current year, will be met by repayable advances from the contingencies fund.