asked the Minister for Transport if it is still Government policy to have CIE reduce its deficit by 2½ per cent per annum; and if he will comment on this in view of the increased deficit of £136 million expected from CIE.
Written Answers. - CIE deficit.
282.
The arrangements introduced on 30 June 1983 in relation to CIE still apply. They include a requirement for the board to reduce CIE's annual expenditure in real terms by 12 per cent over a five year period commencing in 1984 and with the 1983 outturn as the base. This will call for a reduction of about 2½ per cent in expenditure over each of the five years.
The board have assured me that the projected deficit for 1983 will not be greater than £104 million which, if achieved, will be £5 million less than last year. This will be the first time in 15 years that the deficit will have reduced.
I have told the board that this trend must continue in 1984 and beyond and that money outside the June formula will not be forthcoming.