asked Her Majesty's Government:What financial objectives they have set for London Transport.
We have written to Peter Ford, chairman of LT, to set new medium-term financial objectives for LT to achieve in 1998–99. These replace the objectives which came to an end on 31st March 1996. The package of new objectives sets challenging but achievable targets for the continued improvement in LT's financial performance and efficiency. The objectives are set out below.
| All figures are at 1995/96 prices | Objective |
| Costs per train kilometre (1) | Not more than £9.45 |
| LUL gross margin (2) | At least £285 million |
| Bus subsidy per kilometre (3) | Not more than 6.0 pence |
| LT Buses gross loss (4) | Not more than £20 million |
| Group services etc. (5) gross loss | Not more than £21.5 million |
| Dial-a-Ride costs per trip | Not more than £9.40 |
| Property rental income growth | To be at least as good as the average shown by the IPD index (6) on three year rolling basis |
Notes:
1. Costs per operated train kilometre to exclude depreciation, renewals, restructuring and PFI costs.
2. LUL gross margin before depreciation, renewals, restructuring and PFI costs.
3. Net subsidy per operated bus kilometre before depreciation, renewals, restructuring and PFI costs.
4. LT Buses gross loss before depreciation, renewal, restructuring, and PFI costs.
5. LT Group Services, plus Victoria Coach Station, Unit for Disabled Passengers, PASS and LT Museum.
6. IPD is the Investment Property Databank index.