HC Deb 14 February 1997 vol 290 c319W
Sir Irvine Patnick

To ask the Secretary of State for the Environment if the Government will make additional funds available to local authorities in South Yorkshire to help them to meet the debts and liabilities associated with the south Yorkshire supertram. [16141]

Mr. Curry

The Government are well aware of the exceptional problems facing the South Yorkshire districts and the South Yorkshire passenger transport authority as a result of the loss-making supertram project. We have looked very carefully at this problem and discussed it with representatives of the South Yorkshire districts. We have decided to issue a further £20 million in credit approvals for 1997–98. We are also prepared to issue capitalisation directions if these would help authorities to meet the costs of supertram in 1997–98.

If the districts set budgets above their provisional cap, I will look carefully at all their circumstances before determining a final cap which is reasonable and achievable.