To ask the Secretary of State for Transport if he has any plans to change present levels of financial support for British R ail in the light of increasing demand for rail services.

The objectives agreed with the chairman of the British Railways Board in October 1986 provide for a reduction in public service obligation grant to the board to £555 million (at 1986–87 prices) in 1989–90. Increasing demand reflects well on the board's efforts to improve the quality and marketing of its services, and rising revenues from passengers make a valuable contribution towards reducing the cost to the taxpayer.