Subsidy threat
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WHITEHALL is to take much tighter control of subsidies the metropolitan county councils can hand out for public transport.
Transport Secretary David Howell announced this week that he is to introduce legislation in the autumn which will allow him to tell the authorities how much they should hand out in subsidy.
The excessive subsidies paid out by the metropolitan county councils were a significant part of total local authority overspending. The unrealistic plans being drawn up for the next year could lead to further legal challenges from ratepayers.
"The objectives are to improve efficiency, obtain better value for money and maintain a reasonable balance between travellers, ratepayers and taxpay ers," said Mr Howell. • The new legislation will define the basis for the payment of subsidies in London and the metropolitan counties. The authorities will have to review the structure of the PTEs and greater scope will be allowed for private sector competition.
Mr Howell said he would take reserve powers in the Bill to take over London Transport.