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British Railways (Railway Support Requirements)

Volume 982: debated on Wednesday 2 April 1980

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asked the Minister of Transport if he will make available the British Railways Board's forecasts of passenger railway support requirements for the current year.

I have accepted the British Railways Board's claim for passenger support for 1980 at £552·5 million. The detailed information requested is as follows:


£ million

£ million

Reference to previous tables

Total indirect costs (passenger)770·12(b)
Less: net contribution from business sectors223·01(a)
other income4·8
Special replacement allowance69·7
Total payable612·0
Payment by PTEs59·5
Payment by central Government552·5
Forecast loaded train miles203·9 million
Forecast passenger miles20,505 million

Notes to the tables:

1. The tables show the British Railways Board's forecast of its requirement for passenger support in 1980.

2. The board claims compensation from the Minister for the financial burden of operating the passenger railway system as a public service under section 3 of the Railways Act 1974 and EEC Council regulation 1191/69.

3. The board's annual claim for compensation sets out the forecast costs of the passenger railway system and the forecast revenue for the coming year. The amount claimed is the difference between these costs and earnings (with minor adjustments).

4. Table 1 shows the breakdown of direct expenses and revenue for the four passenger business sectors. Direct expenses comprise train service expenses (train crews, fuel, carriage cleaning and so on), station expenses and miscellaneous expenses—for example publicity.

5. Table 2 shows the indirect costs—that is those not attributed to particular services or groups of services—for both passenger and freight businesses. The costs charged to freight are then deducted to give those for the passenger business.

6. Table 3 shows how the passenger support requirement is derived by deducting from the indirect costs other income and the net contribution from the business sectors and by adding replacement allowance.

7. Central Government support for 1980 has been agreed by the Minister in the sum of £552·5 million which is paid during the year in weekly instalments.