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Government to spend more on NFC and NBC

7th February 1975
Page 21
Page 21, 7th February 1975 — Government to spend more on NFC and NBC
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Which of the following most accurately describes the problem?

WHILE GOVERNMENT spending will be pruned severely over the next five years, allocations for the National Bus Company and the National Freight Corporation will increase substantially.

A White Paper, Public Spending to 1978-79. published by the Treasury reveals that the NBC will increase its spending from £14,300,000 in this financial y.ear (1974-75) to £23,700,000 next year (197576) and the following year (1976-77). This will rise to £24m for 1977-78 and for 1978-79.

"The provision is higher than in the previous White Paper to enable the Company to reduce the increasing average age of its fleet and to catch up with improvements to depot facilities."

Since 1973-74 there have been no specific subsidies to the NBC to keep down fares and despite the Company's warning that without aid it will face financial difficulty, none is projected between now and 1979.

Fuel grants: Bus fuel grants, estimated at £39m in the current financial year, will gradually decline to £31,700,000 in 1975-76, £27,900,000 in 1976 77., £27m in 1977-78 and rise again to £32m in 1978-79. Private operators: New bus grants to private operators are planned to remain constant at Om a year until 1976-77, but falling to £300,000 in the years 197779, N.F.C: National Freight Corporation spending is planned to rise from £21m this year (1974-75) to £32m next (1975-76), £33m in 1976-77, £34m in 1977-78 and £35m in 1978-79.

"In the light of experience over the first five years of its existence, the Corporation now plans to maintain its competitive position by developing existing and new services and facilities to meet changing patterns of customer demands," the White Paper says.

"The investment levels provide accordingly," the document adds.

Roads: Although spendirq on the road programme wit continue to rise pariculari3. on maintenance of existiq motorways and trunk roads. the White Paper stressee that "it is no longer a growtt programme" and is low ir the Government's list oi priorities.

Scotland: Expenditure 133 the Scottish , Transpor Group is estimated for tht current year at 0,900,00( and £5,500,000 in the follow. ing two years rising to £6rn it 1977-78 and 1978-79.

Tags

Organisations: NBC WHILE GOVERNMENT

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