asked the Chancellor of the Exchequer what was the total value of duty-free imports for education authorities and other public bodies for the last convenient year; what control he exercises on the necessity for such imports; and what further measures he is taking to encourage the purchase of British-made substitutes.

Precise figures are not available. But in the year ended 31st March, 1968, goods to the value of £11·8 million were relieved from duty on the grounds that they were to be imported for scientific research or the advancement of learning, art or sport, mostly by education authorities and public bodies Relief is only given after investigation by the Board of Trade and is not given where suitable British goods are known to be available.

asked the Chancellor of the Exchequer if he will make a statement on the future of the National Savings movement.

As my right hon. Friends the Chancellor of the Exchequer and the Financial Secretary have recently stated, in the House and elsewhere, we are actively considering the possibility of new initiatives in the savings field.

asked the Chancellor of the Exchequer how much he estimates private savings have increased over the last 12 months; and what steps he is taking to increase them.

Personal savings in the 12 months to 30th September last are estimated at £2,232 million, which is £123 million higher than in the previous 12 months. I dealt with possible new measures to increase savings in my reply earlier to the hon. Member for Harrow, Central (Mr. Grant) and others.

asked the Chancellor of the Exchequer what proposals he now has for a scheme of voluntary contractual savings; and if he will make a statement.

I have nothing to add to the answer I gave earlier today to the hon. Members for Harrow, central (Mr. Grant) and Worcestershire, South (Sir G. Nabarro).

asked the Chancellor of the Exchequer what was the cost of purchasing aircraft from the United States in the year 1968; and whether this figure was included in the balance of payments figures for the year.

Payments to the U.S.A. for military aircraft covered by the ExIm loan arrangements were £109 million. These payments will be included in the balance of payments figures for 1968 which will be published in March. Payments of £89 million for the first three quarters of the year were included in the balance of payments published in December.

asked the Chancellor of the Exchequer whether he will state his criteria for giving Treasury consent to the acquisition of British by foreign enterprises.

It is the policy of the Government to consider each application in the light of all the relevant factors, including the economic advantages and disadvantages to the United Kingdom, the national importance of a particular firm or industry, and the benefit to the balance of payments and to the reserves.

asked the Chancellor of the Exchequer what proposals he is considering for the reform of close company legislation.

A large number of proposals were recently discussed between the Inland Revenue and representatives of commerce and industry. I am now considering them.

asked the Chancellor of the Exchequer if he will now introduce proposals to restrict the outflow of private portfolio investment within the sterling area.

The Voluntary Programme already covers portfolio investment by institutions in the four developed countries of the Sterling Area. I have no present plans for extending these arrangements.

asked the Chancellor of the Exchequer what progress has been made in activating the Special Drawing Rights Scheme.

I hope that ratification of the scheme by governments will be completed this spring. Thereafter activation can follow as soon as the Fund so decides.

asked the Chancellor of the Exchequer what plans he has to meet the United States Secretary of the Treasury.

I would refer my hon. Friend to the answer given a week ago in reply to a similar question by my hon. Friend the Member for Ashton-under-Lyne (Mr. Sheldon).—[Vol. 776, c. 230.]

asked the Chancellor of the Exchequer if he will bring up to date, and publish, the estimate given by the Financial Secretary to the Treasury on 26th March, 1968, of the effect on retail prices during 1969 of devaluation and tax changes.

I estimate that the effect of devaluation has already fully worked through and that the tax increases last March and November will add about three-quarters of one per cent. to the retail prices index between December, 1968, and December, 1969.

asked the Chancellor of the Exchequer if he will take steps to raise the rate of interest paid by the Government on funds lent to it from the Companies Liquidation Account, the Court Funds Investment Account (Deposit Accounts), and on other funds, lodgement of which with the Exchequer is obligatory and interest paid is under 5 per cent. per annum.

The surplus moneys of these two Accounts are invested in authorised securities. The yield to the Accounts therefore reflects the underlying performance of their investments.

asked the Chancellor of the Exchequer what undertakings he has given to the representatives of the International Monetary Fund in relation to public expenditure.

I have given no such undertaking. My right hon. Friend the Home Secretary's Letter of Intent of 23rd November, 1967, stated the Government's intention to keep the borrowing requirement for 1968–69 under £1,000 million. In fact, it is likely to be far smaller.

asked the Chancellor of the Exchequer if he is satisfied that, within their restricted loan ceiling, the banks will be able to meet credit requirements for import substitution by the agricultural and fishing industries; and if he will make a statement.

Within the ceiling agriculture and fishing remain priority categories of lending, in recognition of their import-saving rôle, and I believe that the banks should be able to continue to meet all reasonable and creditworthy demands for credit in these categories.

asked the Chancellor of the Exchequer whether he will consider the revision of tax reliefs for foster parents.

I have noted my hon. Friend's suggestion, but I cannot anticipate my right hon. Friend's Budget statement.

asked the Chancellor of the Exchequer what estimate he has made of the amount of time and money required to ascertain the expenditure incurred by each of those Government Departments which took measures in regard to the demonstration in London on Sunday, 27th October.

It would be necessary for a large number of Departments to attempt to work out in detail from a variety of records the cost of each of the different measures they took together with an estimate of the relevant administrative costs, and for the whole exercise and its results to be co-ordinated centrally. I have no doubt that it would require considerable expenditure of time and money, disproportionate to the value of the information.

asked the Chancellor of the Exchequer, in view of the hardship imposed on holders of War Loan 3½ per cent., particularly in the case of those forced to sell their holdings, what proposals he now has for the amelioration of their situation.

I have no proposals beyond those aimed at restoring the strength of the British economy as a whole and thereby strengthening the market for War Loan and for other fixed interest securities.

asked the Chancellor of the Exchequer what proposals he has to control more strictly the increase in the money supply by altering the practice of the authorities' intervention in the gilt-edged market.

None. I am not convinced that a change in the underlying policies and techniques followed by the authorities in the management of the gilt-edged market would in our particular situation have the results which the hon. Member seems to expect.

asked the Chancellor of the Exchequer what was the cost to public funds of the Christmas cards distributed by the Decimal Currency Board, including the cost of the official paid O.H.M.S. envelopes; and how many such Christmas cards were sent.

This is a matter of day-to-day administration of the Decimal Currency Board, and it is for the Board and not for me to answer for it. I understand that the Chairman of the Board is sending the information requested to the hon. Member.

asked the Chancellor of the Exchequer whether the National Economic Development Council has now completed its review of the value added tax; and when he will decide on its possible introduction.

I understand that a report by the National Economic Development Office is likely to be completed in the early spring. As to the second part of the Question, my right hon. Friend naturally keeps all forms of taxation continuously under review.

asked the Chancellor of the Exchequer what steps are taken by his Department to ensure that aliens' income tax liability is not reduced on the ground that they have dependent children when they have previously obtained a "no child" certificate in order to get the permission to work in the United Kingdom.

The tax returns of aliens claiming relief for dependent children are examined like those of other taxpayers and supporting evidence called for where necessary.

asked the Chancellor of the Exchequer whether he will now seek to exempt registered disabled drivers from paying the additional tax on motor fuel.

I am afraid this would not be practicable.

asked the Chancellor of the Exchequer (1) whether he will state the etimated revenue from the tax on fuel used by motor vehicles in the year ending 31st March, 1969; and how much of this is attributable to the increase of 4dper gallon imposed in March, 1968;(2) how much of the estimated revenue from the tax on fuel used by motor vehicles in the year ending 31st March, 1969, is attributable to the increase of 5dper gallon imposed in November, 1968.

Following are the figures:

asked the Chancellor of the Exchequer if he is aware that the 2dstamp on receipts is unnecessary, is often evaded and is wasteful of productive time; and if he will take steps to abolish it.

I have carefully noted my hon. Friend's suggestion.

asked the Chancellor of the Exchequer what is his estimate of the loss incurred to the Inland Revenue during the last financial year arising from the practice known as cube-cutting.

On the face of it the practice known as cube-cutting taken by itself should not mean any loss of tax.

asked the Chancellor of the Exchequer what forecasts of changes in the United Kingdom economy have been made by his Department since the forecasts of expenditure, imports and gross domestic product published in the Financial Statement 1968–69 were made; and if he will place copies of such subsequent forecasts in the Library.

Several such forecasts have been prepared since those published in the last Financial Statement. It is not my intention to disclose them, but I hope to continue my practice of publishing economic forecasts annually at the time of the Budget.

asked the Chancellor of the Exchequer (1) if he will give an estimate of the loss in potential interest per £1,000 per quarter incurred by importers on moneys held by Her Majesty's Department of Customs and Excise as import deposits;(2) if he will now give an estimate of the loss in potential interest per £1,000 per quarter incurred by manufacturing industries in respect of Selective Employment Tax.

If firms paying import deposits or S.E.T. had been able to lend these funds to a bank or in the money market, they might have expected at current rates to earn on average about £15 to £20 per quarter per £1,000.

asked the Chancellor of the Exchequer what estimate he has made of the cost to the revenue of treating married people as separate individuals for tax purposes.

I would refer the hon. Member to the answer given to the hon. Member for Runcorn (Mr. Carlisle) on 20th January.—[Vol. 776, c. 40.]

asked the Chancellor of the Exchequer at what levels of income under existing tax provisions would married couples with varying numbers of children and with no children, respectively, begin to pay less tax than two single people whose joint income is at similar levels; and how many such married couples exist.

I cannot give answers to the hon. Member's Question since the position depends not only on the levels of income and family circumstances but also upon how much of the income is earned and how it is divided between the spouses. But in the big majority of cases married couples pay less tax than two single people with the same incomes. The main exception is where the wife has investment income of £120 a year or more. Most of the other cases are surtaxpayers.

asked the Chancellor of the Exchequer what assessment he has made of the distribution of wealth in the United Kingdom; and what proposals he has to introduce a wealth tax.

On the first part of the Question, I would refer the hon. Member to the Answer given to my hon. Friend the Member for Croydon, South (Mr. Winnick) on 19th November, 1968At this time of year the hon. Gentleman will not expect me to make any statement on the second part of his Question.—[Vol. 773, c. 244.]

asked the Chancellor of the Exchequer whether he will consider initiating a new series of local savings weeks, including a campaign at factory level.

Local savings drives, including campaigns at factory level, are already undertaken.

asked the Chancellor of the Exchequer in view of the increasing gap between the Government's expenditure on roads and the revenue from motoring taxation, if he will consider reducing the rates of motoring taxes before he makes his next Budget statement.

My right hon. Friend will consider all the relevant factors when he is preparing his Budget proposals.

asked the Chancellor of the Exchequer what payments the Treasury has received from the Duchy of Cornwall since 1952; and if these payments are being continued.

I assume that my hon. Friend is referring to the abatement of the annual Civil List grant by the proportion of the net revenues of the Duchy of Cornwall laid down by the Civil List Act, 1952. The figures are given below. On the second part of the Question, thse arrangements will continue during the minority of the Duke of Cornwall, as required by the Act.

asked the Chancellor of the Exchequer what estimate he has made of the additional revenue in 1969–70 and 1970–71 arising from an increase in the rate of Corporation Tax from 42½ per cent. to 45 per cent.

On the basis of the Budget Estimates an increase of 2½ per cent. on profits in the financial year beginning 1st April, 1967, would yield £57 million in 1968–69 and £98 million for a full year It is not the practice to give estimates relating to the coming year before the Budget.

asked the Chancellor of the Exchequer if he will publish the expenditure per head of the population in Scotland and England and Wales, respectively, on each of the services for which district calculations are possible for the year 1967–68.

The following table shows public expenditure and central Government expenditure per head of population in Scotland, and England and

asked the Chancellor of the Exchequer what amounts of Government expenditure, of those items that can be directly apportioned, were spent in 1967–68 in Scotland, England and Wales; and what percentage these figures represent of total Government expenditure for the year.

Central Government expenditure in Great Britain in 1967–68

asked the Chancellor of the Exchequer what estimate he has made of net reduction in revenue in 1969–70 resulting from abolition of the close company, after allowing for increases in income tax and surtax.

No reliable estimate can be made of the cost of abolishing close company status as it is not possible to foresee its effect on company policy.

asked the Chancellor of the Exchequer if, when framing his Budget proposals, he will give consideration to the reduction of road fund licence duty and petrol tax in order to alleviate hardship imposed on road users by recent. Government measures.

My right hon. Friend will give consideration to all relevant factors in framing his Budget.

asked the Chancellor of the Exchequer how many Scottish taxpayers are unable to settle their tax affairs through their local Inland Revenue office.

So far, the tax affairs of some 700,000 employees in Scotland are no longer handled in their local tax offices. This number will increase as the Inland Revenue Computer centre at East Kilbride takes on more work. Taxpayers who wish to talk over their tax problems on the spot will, however, still be able to call at local tax offices, or at special inquiry offices which are being set up for the purpose.

asked the Chancellor of the Exchequer what estimate he has made of the reduction of revenue in 1969–70 arising from a cut in the standard rate of tax on earned income only by 6d.; and what estimate he has made of the reduction in revenue arising from a cut in the reduced rates on earned income by 6d.

On the assumption that earned income was treated as the bottom slice of a mixed income, about £110 million and £140 million respectively for 1968–69, the latest year for which estimates are available.

asked the Chancellor of the Exchequer what percentage of the next £1,000 of his earnings above £5,000, £8,500, £10,000 and £15,000 a year is now retained by a married man with two children under 11 years of age; and what are the comparable figures at current rates of exchange by a similar man after payment of direct taxation in the United States, France, West Germany

asked the Chancellor of the Exchequer if he will introduce legislation so that painters and sculptors can spread their earnings for tax over three years in the same way as writers, composers and playwrights; and if he will make a statement.

I have noted this suggestion.

asked the Chancellor of the Exchequer what was the net increase in the amount invested in Premium Bonds in the year 1968; and what is the total sum now invested in these Bonds.

About £68 million and £691 million respectively.

asked the Chancellor of the Exchequer if he will give an estimate of the administrative cost involved in a full year to deal with claims for the refund of Selective Employment Tax and import deposits.

The cost of dealing with claims for refund of Selective Employment Tax is estimated at £1·4 million a year. The cost of administering the import deposit scheme is estimated and Japan, based on information he derives from international organisations.

I will, with permission, circulate a table in the OFFICIAL REPORT:at £400,000 for a full year, of which half is attributable to the refund work.

asked the Chanchellor of the Exchequer if he will arrange a conference in London in 1969 of the appropriate authorities to negotiate a revision of the Bretton Woods agreements.

I have nothing to add to the Answer I gave earlier today to the hon. Member's similar Question.

asked the Chancellor of the Exchequer if he will give an estimate of the increase in costs in a full year arising from the use by the Department of Inland Revenue of first-class post facilities.

It is not possible to give an accurate estimate at this stage.

asked the Chancellor of the Exchequer why the Commissioners of Inland Revenue have not operated the provisions of Section 458 of the Income Tax Act, 1952, whereby they may consult the Secretary of State for Education and Science on the question whether any income is income arising from a scholarship.

Because there have been no cases since the law took its present form in 1964 in which the Commissioners thought that such consultation would help in resolving the point at issue.

asked the Minister of Power if he will give an assurance that the announced pensions increases to public servants will also be applied to pensioners in the gas and electricity industries.

This is the normal practice, subject to my approval as required by the Statutes.

asked the Minister of Power how many miles of trunk pipeline for gas distribution exist today; and how many miles are projected for use in 1971 and in 1975.

The Gas Council's existing and planned bulk transmission system is:—

asked the Minister of Power if he will list the towns in England and Wales where his offices were shut on New Year's Day; which of them have begun a practice of closing on New Year's Day during the last four years; and which offices had a third day's holiday during Christmas week.

All the Ministry's offices in England and Wales, including those dealing with the general public, were open on New Year's Day except for a small number of testing stations—in Farn-worth, Liverpool, Manchester and New-castle-on-Tyne—which have for several years made a practice of closing on that day to suit local needs. All staff of the Ministry were allowed a third day's holiday over Christmas; the main offices of the Ministry remained open in London and elsewhere but certain research establishments and testing stations, where the staff were not required to be on duty, were closed in the following places—Bath, Birmingham, Brighton, Bristol, Buxton, Cambridge, Cheltenham, Coventry, Exeter, Farnworth, Gloucester, Hull, Leeds, Leicester, London, Manchester, Newcastle-upon-Tyne, Newport (Mon.), Nottingham, Oldham, Reading, Sheffield, Southampton and Swansea.

asked the Minister of Power what estimate he has made of the manpower requirements of the South Wales Division of the British Steel Corporation by 1975; and how this compares with existing numbers.

I am in close touch with the British Steel Corporation about their future manpower requirements but questions about requirements by Groups and Divisions should be addressed to the Corporation. I am, however, informed that it could be misleading for the Corporation to convert its estimate for the country generally into published forecasts for particular areas as the future levels of employment in those areas must depend on decisions about the future of individual works and on local steps to increase productivity that have yet to be taken.

asked the Minister of Power if he will make a statement about the continued delay in settling the compensation value of the ordinary shares of G.K.N. Steel Company Limited.

Agreement has now been reached with the Stockholders' Representative on the value of the ordinary shares of G.K.N. Steel Company Limited (now renamed British Steel Corporation (Holdings) Limited). The value is £2 17s. 11·2d. for each £1 share, giving a total of about £42 million and the date for conversion is today.The compensation value of all the securities vesting in the British Steel Corporation under the Iron and Steel Act, 1967, has now been settled. The total compensation value, excluding the value of the securities of Richard Thomas and Baldwins Limited which was already in public ownership, is £563½ million.

asked the Minister of Housing and Local Government what progress is being made with plans for the building of a movable barrier or permanent barrage as flood protection for London against surges from the North Sea on the River Thames, as proposed to him by the hon. Member for Twickenham on 11th April, 1968.

The investigation being carried out by the Greater London Council—to which my right hon. Friend referred in his reply to the hon. Member of 20th February, 1968—has made good progress and a technical report on it has just been rendered.

asked the Minister of Housing and Local Government what plans he now has for reviewing remuneration and payment of expenses incurred by elected representatives in local government.

The local authority associations have been told that my right hon. Friend will review the maximum rates of car travel, subsistence and financial loss allowances if they will let him have their detailed proposals for increases. He expects to receive joint proposals from them before long.

asked the Minister of Housing and Local Government when he expects to give financial sanction to the Hatfield New Town Commission to complete the redevelopment of Old Hatfield which has already been commenced.

I am considering the Commission's proposals for redevelopment and will reach a decision as soon as possible.

asked the Minister of Housing and Local Government if, in view of the experience of the working of the present provisions of the Land Commission Act, he will increase the extra-statutory concession he announced on 22nd July, 1968, to a figure of £10,000 pending his introduction of amending legislation.

No. I am satisfied that the concession announced on 22nd July, 1968, is adequate to deal with cases where the owner of the land could not have been expected to know about the White Paper on the Land Commission and to provide a measure of relief in other cases.

asked the Minister of Housing and Local Government if he will introduce amending legislation to allow the Land Commission to take as the base value when assessing levy the price of land purchased between 22nd September, 1965, and 6th April, 1967, in cases where the Commission is satisfied the price was determined as part of a bona-fide arms-length transaction.

No.

asked the Minister of Housing and Local Government what discussions he has had with the union leaders of manual workers in the water supply industry; and if he will list the adjustments to the recent pay settlement required to bring it within the Government's incomes policy.

Representatives of both sides of the industry met officials of the Department on Wednesday 22nd January to discuss their recent pay settlement for manual workers.It is not yet clear whether the settlement can be justified under the Government's incomes policy, but the industry have undertaken to provide certain additional information relating to productivity to enable the matter to be further considered.

asked the Minister of Housing and Local Government what was the number of houses on which local authorities applied mortgages during each of the last three financial years, and what estimate he has made of this figure for the current financial year.

The numbers of mortgages which local authorities have granted in the last three financial years are:

asked the Minister of Housing and Local Government if he is aware that during the period 1st January 1959, to 31st December, 1968, the Huddersfield local authority demolished 2,837 houses and only built 1,992 houses; and if he will make a statement on this discrepancy.

The Ministry's records show that during the ten-year period referred to by my hon. Friend Huddersfield County Borough completed 1,756 dwellings compared with 2,838 demolished. In addition, during the same period over 3,500 new dwellings were built in the Borough for private owners.My right hon. Friend is aware of Huddersfield's housing needs and would consider sympathetically any proposals from the Borough for an increase in their building programme.

asked the Minister of Housing and Local Government what are the latest figures for the number of new borrowers who have taken advantage of the option mortgage scheme.

According to the latest information available approximately 30,000 new borrowers have chosen option mortgages.

asked the Minister of Housing and Local Government how many people are now included in the option mortgage scheme.

Up to the end of November, 1968, about 190,000 people had option mortgages.

asked the Minister of Housing and Local Government what are the latest figures for the number of new borrowers who have taken advantage of the 100 per cent. mortgage guarantee scheme.

According to a sample survey of building society mortgages, over 10,000 borrowers had taken advantage of the mortgage guarantee scheme up to the end of November, 1968.

asked the Minister of Housing and Local Government what are the latest figures for the number of people who have taken advantage of the 100 per cent. mortgage guarantee scheme, expressed as a percentage of existing and new borrowers.

According to the latest information available approximately 4 per cent. of new borrowers have taken advantage of the Option Mortgage Guarantee Scheme. This facility was not available to existing borrowers.

asked the Minister of Housing and Local Government what are the latest figures for the number of people who have taken advantage of the option mortgage scheme, expressed as a percentage of existing and new borrowers.

According to the latest information available about 9 per cent. of new borrowers are choosing option mortgages and about 4 per cent. of the existing borrowers who had to make their decision by 31st December, 1967 changed to option mortgages.

asked the Minister of Housing and Local Government what is his latest estimate of the cost of the option mortgage scheme during the current financial year.

£7 million.

asked the Minister of Housing and Local Government what further guidance he plans to give local authorities on means to relieve hardship for owners of older properties following the cuts in the local authority lending quotas.

In a Circular issued to English local authorities on 23rd January about the lending arrangements for 1969–70, I have pointed out that it is more important than ever for them to use their quotas in assisting those whose needs cannot be met elsewhere, such as persons in housing need who wish to buy an older house on which they cannot get a loan from a building society. Similar guidance has been given to authorities in Wales and Monmouthshire in a Circular issued by the Welsh Office on 27th January.

asked the Secretary of State for the Home Department what progress has been made in his consultations with a view to establishing the proposed Commission on the Constitution.

I hope a statement can be made shortly.

asked the Minister of Transport what study he has made of the financial and administrative cost of collecting tolls as a means of raising revenue.

Studies have been carried out from time to time on the cost of collecting tolls on motorways. It is also one of the matters which is studied whenever the question of imposing tolls on a new estuarial crossing is considered.

asked the Minister of Transport whether he will give figures showing the number of reported traffic accidents in the village of Hertingfordbury during each of the past five years and the numbers of persons injured.

asked the Minister of Housing and Local Government if he will set out in tabular form the movement of new house prices in England and Wales in each quarter since October, 1964, taking 1958 as 100.

Following is the table:

The figures are as follows:

asked the Minister of Transport when it is now intended that the work on the Hertingfordbury Village by-pass, which was programmed by the Hertfordshire County Council for the year 1969–70, will begin.

The A414 through Hertingfordbury is the responsibility of Hertfordshire County Council as highway authority. A scheme for by-passing the village is in the list of schemes for preparation in the next five years. The highway authority has not yet prepared the scheme and so it is not possible to say when work will begin.

asked the Minister of Transport if he will list the towns in England and Wales where his offices were shut on New Year's Day; which of them have begun a practice of closing on New Year's Day during the last four years; and which offices had a third day's holiday during Christmas week.

The towns in England where my offices were closed on New Year's Day are given in the list below. (None was closed in Wales.)Apart from the Gateshead office (which came into being only last year), none has started the practice of closing on New Year's Day within the last four years. All which closed on New Year's Day did so instead of taking the customary third day's holiday in Christmas week.

asked the Minister of Transport what proportion of households in England and Wales own a car; and how this compares with the previous three years.

The halfway mark was readied about mid-1968It is estimated from sample inquiries that the midyear percentages in 1965, 1966 and 1967 were 41, 46 and 48 respectively. These proportions include households with the use of a car as well as those which owned one.

asked the Minister of Transport whether he will announce, in respect of each unremunerative railway passenger service which he has undertaken to grant aid under Section 39(1) of the Transport Act, 1968, the length of the undertaking and the amount of grant payable in 1969.

The information requested is given below.The list of 222 services differs in some respect from that given in Answer to the hon. Member for Sudbury and Wood- bridge (Mr. Stainton) on 15th November, 1968. The grant-aided London commuter services of the Eastern, London Midland and Western Regions of British Railways are listed individually, but the Southern Region's commuter network has been treated as an entity. There have also been one or two minor changes in the descriptions of the services.The proportion of short-term undertakings is relatively high—133 for one year, 78 for two years and only 11 for the maximum statutory period of three years. This is partly because of the lack of detailed estimates after 1969 for some of the services and also because of the imminent setting up of Passenger Transport Authorities in Tyneside, South East Lancashire/North East Cheshire, Mersey-side and the West Midlands, and the proposed changes in the organisation of public transport in London. In due course I expect the majority of undertakings that are renewed will be for three years.The amount of grant in each case is still subject to adjustment to take account of grants to be paid under Section 40 of the Transport Act, 1968, pending the elimination of surplus track and signalling equipment, and in respect of changes in interest payments following the financial reconstruction under Section 42 of the same Act. The effect of these adjustments will vary widely between different services, according to the circumstances, but I expect that overall there will be a substantial reduction on the total of £59·816 million.I have given a three year undertaking to pay grant in 1969, 1970 and 1971 for the following 11 services:—