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Pensioner Travel (Tyne and Wear)

I assure my right hon. Friend that meaningful discussions are going on. The Government recognise the real difficulties that the transport executive has in balancing its budget. Last summer’s consultation with the Local Government Association and local councils resulted in general agreement that the distribution of money through the formula is the best way in which to pursue the issue. Indeed, representations by my right hon. Friend and others on the formula grant distribution method show that the needs of his authority, and of Tyne and Wear authorities in general, indicate that there is a shortfall in the ability of the formula grant to distribute money. Discussions have taken place and are taking place with the local authorities, the transport authority and the transport executive to try to resolve that problem. The level of pensioner bus usage in my right hon. Friend’s area is very high, which is why we are continuing discussions with the transport authority and local authorities. My difficulty is that we must treat all local authorities fairly, and I know that my right hon. Friend agrees with that point. Funding on concessionary fares is supported by the formula grant. My right hon. Friend is aware that the Chancellor added an additional £350 million in formula grant in 2006–07 in order to support the move from the statutory half-fare scheme to a free-fare scheme for all pensioners and disabled people. The funding for those new responsibilities has been added to formula grant in line with a commitment to provide authorities with continued flexibility on the use of their resources.