asked the Secretary of State for Transport what will be the rate of grant for rural bus services in 1987–88.

The Government introduced a rural bus grant last April to encourage provision of rural bus services during the change over to deregulation. It is to be phased out over the following three years. The grant was paid at 6p per eligible bus mile in 1986–87. It will be paid at 5p per bus mile in 1987–88 and so will continue to be an important incentive for rural bus service operators.