The Minister of State, Department for Transport (Mrs Theresa Villiers)
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Hansard
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Excerpts
Subject to parliamentary approval, the Office of Rail Regulation departmental expenditure limit (DEL) and annually managed expenditure (AME) will be increased as follows:
DEL: £792,000
AME: £243,000
The impact on resources and capital are as set out in the following table:
£'000 | Change | NEW DEL |
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| Voted | Non-voted | Voted | Non-voted | Total |
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Resource | 242 | 550 | 2 | 550 | 552 |
Of which | | | | | |
Administration budget | 242 | - | 2 | - | 2 |
Capital | (450) | - | 350 | - | 350 |
Depreciation | 150 | - | (750) | - | (750) |
Total | (58) | 550 | (398) | 550 | 152 |
The change in the resource element of DEL arises because ORR is unable to record more income than cost from the industry. £242,000 budget cover is required so that ORR can reduce the recorded negative DEL to a token vote of £2,000.
The spring supplementary also reflects ORR’s cash payment £550,000 towards releasing provisions for early departures in 2010-11. ORR does not require cash to make these payments but needs to reflect the cost in non-voted DEL so that ORR does not exceed its overall DEL limit for 2010-11.
ORR needs to increase its provision due to staff changes that will take place. The spring supplementary shows a further £243,000 (non-cash) being added to a provision initially created in the main estimate. These AME costs will be recovered from the rail industry.
These changes are of a technical nature to ensure that ORR keeps within its DEL and AME limits. ORR is funded by the railway industry and anticipates an underspend against its gross budget of circa £2,000,000 this year.