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LRT subsidy move

16th February 1985
Page 22
Page 22, 16th February 1985 — LRT subsidy move
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Which of the following most accurately describes the problem?

MPS HAVE approved the first step in the Government's battle to compel the Greater London Council to hand over £258m to London Regional Transport this year.

They approved by 150 votes to 67 a ways and means resolution, the forerunner of the Bill to be debated on Monday next week, which will effectively overturn the High Court ruling that Transport Secretary Nicholas Ridley acted illegally in requiring the GLC to hand over £278m.

The debate turned into a slanging match between Mr Ridley and shadow transport secretary Gwynneth Dunwoody.

Mr Ridley accused the GLC of "creative accounting" and accused it of robbing London Regional Transport and the ratepayer of more than £70m, but in contrast Mrs Dunwoody accused Mr Ridley of taking £50m from the GLC.

She accused him of producing inept, badly drafted and incompetent legislation and then having the effrontery to say that he would redraw the law when he had been caught out by the Court.

The committee voted to lobby MPs to reject the new legislation.

A report presented by the GLC director-general Maurice Stonefrost, said: "The new legislation would require the GLC to pay LRT some £50m more than it needs to meet operating requirements in 1984/85."

As a result this would be contrary to the interests of ratepayers and would present "considerable difficulties and uncertainties" to the GLC in preparing its 1985/86 budget.

LRT said that despite the current controversy over its grant subsidy from the GLC this financial year it sees "no immediate threat" to services.

A LRT spokesman said that the main concern was "the uncertainty about future funding".

He declined to comment on GLC statements that LRT is working in surplus and has no need for the extra £50m which Mr Ridley is demanding that the GLC gives to LRT. "The money has been fixed by the Secretary of State and it is for him to comment," he said.


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