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grant option
Page 7
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Assistance should be channelled through local authorities, who had power to 'make grants to bus operators and their expenditure on revenue support was eligible for transport supplementary grant.
Lord Mowbray noted that the rate of grant would be reduced to 40 per cent on September 1 this year, and then to 30, 20 and finally 10 per cent on April 1, 1981, 1982 and 1983. This should mean that every new bus brought into use before April 1, 1984, would get grants, although at a reducing rate.
For the Opposition, Lord Underhill accepted that the Labour Government's White Paper in 1977 had stated that the bus grant should be phased out by 1985. But, he added, a great deal had happened since.
The Select Committee on Nationalised Industries had recommended in 1978 that the grants should be continued indefinitely at what was then the current rate, which he thought was 50 per cent.