Written Answers To Questions
Friday, 29th April, 1955
Transport (Increased Freight Charges)
asked the Minister of Transport and Civil Aviation whether the British Transport Commission has yet applied for his authority to increase freight charges in order to enable them to meet increased costs, including the cost of recent wage increases.
Yes. I have received such an application from the Commission and have under Section 82 of the Transport Act, 1947, referred it to the permanent members of the Transport Tribunal, acting as a Consultative Committee, for their advice. As recommended by the members of the Tribunal, I propose to make regulations authorising the Commission as from 5th June, 1955, to increase the railway freight, dock and canal charges now in operation by 7½per cent. generally, but by 15 per cent. in the case of railway freight charges for merchandise by goods train in consignments of under one ton, and for all merchandise by passenger train other than perishables or traffic carried at the loaded van scale.I will circulate in the OFFICIAL REPORT a memorandum containing the advice I have received from the members of the Tribunal.
Following is the memorandum:
Memorandum for the Minister of Transport and Civil Aviation by the permanent members of the Transport Tribunal acting as a Consultative Committee under Section 82 of the Transport Act, 1947.
1. By a letter dated 12th April, 1955, you asked for our advice upon a request made to you by the British Transport Commission on 7th March, 1955, that they should be authorised under Section 82 of the Transport Act, 1947, to increase the railway freight, dock and canal charges now in operation—
(1) by 15 per cent. in the case of—
(2) by 7½per cent. in the case of—
(3) by 7½per cent. in the case of all dock and canal traffic.
2. As you may be aware we have at present under consideration an application by the Commission under Section 23 of the Transport Act, 1953, for an Order enabling them to increase certain of the charges at present regulated by the British Transport Commission (Passenger) Charges Scheme, 1954. The material supplied to us in support of this application has served to supplement and explain the memorandum which accompanied the Commission's present request.
British Railways
3. In the case of British Railways the Commission's request rests on the assumption that they ought to "pay their way," i.e. that their net receipts should be not less than their fair share of the central charges of the Commission. Upon this assumption which we think unexceptionable the capital questions are:
4. In our report of the 26th January, 1954, upon the last request of this kind put forward by the Commission we discussed in some detail the apportionment of central charges between British Railways and the other revenue-earning activities of the Commission. We see no reason for modifying the views then expressed. The central charges for the "future year" then under discussion were, after deducting interest receivable by the Commission, estimated as£55·5 million. Our conclusion was that British Railways might fairly be expected to contribute£39·5 million towards this sum. The central charges of the Commission in the "future year" now under discussion will, after again deducting interest receivable by the Commission, be of the order of£58 million. The same considerations which in January, 1954, moved us to put the British Railways' fair share of£55·5 million as£39·5 million lead us now to put their share of£58 million at about£41 million.
5. The next question is what upon a prudent estimate the net receipts of British Railways are likely to be in the "future year" on the assumption that no remedial measures are taken.
The view of the Commission is that on this assumption the working expenses of British Railways would exceed the gross receipts by£10 million, i.e., that they would fall short of being able to make their fair contribution to the central charges by£51 million.
We can see no reason for doubting the substantial accuracy of this forecast.
The deterioration in the financial position of British Railways considered as a separate activity can we think best be seen from the comparison made in the following table between the present forecast and figures taken from the latest published accounts of the Commission, those for the calendar year 1953.
| — | 1953 | Future year
| ||
| Gross receipts | £m. | £m. | ||
| Passengers | 114·8 | 117·2 | ||
| Freight, parcels, mails and miscellaneous | 318·3 | 333·0 | ||
| 433·1 | 450·2 | |||
| Working expenses (including depreciation or renewals) | 400·1 | 461·7 | ||
| 33·0 | -11·5 | |||
| Revenue from advertising and letting of sites | 1·6 | 1?6 | 1·5 | 1·5 |
| Total net receipts | 34·6 | -10·0 | ||
The increase in the working expenses (£61·6 million) is attributable almost entirely to ( a) the successive increases in wages and salaries amounting in all to about£36 million per annum and ( b) increases in the maintenance costs charged against revenue (£23 million).
6. It is manifest that every practicable step must be taken to prevent a situation arising in which British Railways would be failing to pay their way by as much as£51 million per annum.
7. The Commission hope to be able to improve the financial prospects revealed by the above calculations by—
8. The remedial measures described in the preceding paragraph would by themselves do no more than enable the railways to produce a surplus of£10 million over their working expenses. They would still, that is to say, be failing to carry their fair share of the burden of the Commission's central charges by as much as£31 million. We think it is plain that such a gap must be at least greatly reduced and that the only available means of doing so is by an increase in freight charges.
9. The particular increases for which authority is sought differentiate between consignments of under 1 ton and those of 1 ton or more. The previous increases authorised under Section 82 of the 1947 Act have not taken this form. As, however, such a differentiation in fact reflects a considerable difference in the actual costs of handling the two classes of consignments we think it is in principle justifiable.
10. The Commission estimate that the increases would produce additional revenue of the order of£17 million per annum and so reduce the true deficit of British Railways to about£14 million. In our view the necessity for increases of this magnitude is obvious and inescapable.
Docks and canals
11. The increases sought in these charges are justified as consequential upon the wages increases since the financial position of these activities was last reviewed in January, 1954. In the case of the docks it is estimated that the yield of a 7½per cent. increase (£0·6 million) will nearly offset the increase in wages. In the case of the canals it is said that the estimated yield (£01 million) will do no more than offset half this increase.
We entertain some doubt whether these estimates will be fulfilled. It seems to us nevertheless that the Commission should be enabled to seek to recoup themselves for these wage increases.
Conclusion
12. For the reasons indicated we advise that Regulations be made as soon as possible authorising the increases specified in the Commission's request.
HUBERT HULL.
A. E. SEWELL.
J. C. POOLE.
26th April, 1955.
Road Improvements And Construction (Proposals)
asked the Minister of Transport and Civil Aviation what overall percentage of work on the sites has been completed for the ten major road works schemes the early completion of which was announced by the then Minister of Transport on 8th December, 1953.
In his statement of 8th December, 1953, my right hon. Friend the Secretary of State for the Colonies announced the proposed authorisation in 1954–55. His statement did not deal with dates as my hon. Friend suggests. He made it clear that the need for preparatory work and land acquisition for such schemes would limit the actual physical work in the first two years.Constructional work is now in progress on three of the schemes, as follows:
Cromwell Road extension
Construction has begun on the section for which the London County Council is responsible.
Stafford-Stoke Road ( A.34)— Provision of three lengths of dual carriageway
Work is 85 per cent. completed.
Loughton ( Bucks) By-pass ( A.5)
About 25 per cent. of the work has been done.
As I told my hon. Friend on 2nd March, preparatory work and/or land acquisition are proceeding on all the remaining schemes.
Herring (Minimum Prices Rule)
asked the Secretary of State for Scotland whether a decision has yet been taken on the draft rule made by the Herring Industry Board fixing minimum prices.
Ministers have decided to approve the making of a rule fixing minimum prices for herring sold to the home market during the period 1st May to 30th September, 1955, in accordance with the draft rule published by the Board in March, subject to the following modifications:
Cotton Exports To Pakistan (Agreement)
asked the President of the Board of Trade whether he will make a statement with regard to the export of British cotton yarns and piece goods to Pakistan.
I am glad to inform my hon. and gallant Friend that an Agreement was signed today between the Government of Pakistan and the Government of the United Kingdom under which the Pakistan Government has undertaken to license the import of cotton yarn and piece goods of United Kingdom manufacture to a total value of$5,200,000, and these should be exported to Pakistan within the next few months. Payment will take the form of the supply to the United Kingdom by the United States of raw cotton of the same value. The arrangement is part of a grant of aid to Pakistan by the United States from which the United Kingdom will also benefit.Arrangements for working the somewhat complicated procedure involved have been agreed in discussion between my Department and the different sections of the cotton industry and the banks. I should like to take this opportunity of acknowledging their ready co-operation.
Milk And Dairies Regulations
asked the Minister of Agriculture, Fisheries and Food what right of appeal exists under his Regulations to farmers who disagree with the decisions of officials of his Department such as milk inspectors; and what is the procedure to be followed in the appeal.
I think my hon. Friend has in mind the milk production advisory officers of the National Agricultural Advisory Service. These officers provide technical assistance in the administration of the Regulations concerned with the hygienic production of milk, but they have no power to take decisions involving statutory action.The Milk and Dairies Regulations, 1949, require that a registered milk producer shall be given notice of intention to cancel his registrations and thus prevent him producing and selling milk for human consumption. He then has the right to make, within 28 days, representations on or objections to the proposed action. His representations are considered by the county agricultural executive committee; objections are referred to an independent tribunal, the constitution and procedure of which are set out in the first schedule to the Regulations. The final decision is taken in the light of the advice I receive from these bodies.Under the provisions of the Milk (Special Designations) (Raw Milk) Regulations, 1949, the same procedure applies in the case of a proposal to suspend or to revoke a producer-retailer's licence to use the special designation "Tuberculin tested" for his milk; save that a producer-retailer has a right of appeal to a tribunal only if his business be carried on in a specified area where no milk may be sold unless it bears a special designation.
British Army
Road, Gomer—Browndown
asked the Secretary of State for War if he is aware of the condition of the military road through Gomer and Browndown between Gosport and Lee-on-the-Solent; if he will institute repairs and the filling of pot-holes at the earliest possible opportunity; and if he will restore the road, especially at the sides, to a safe condition.
This road has been adequately maintained for limited military purposes. I understand, however, that 9 out of every 10 of the vehicles using it are civilian, and we are, therefore, negotiating with the local authority for its handover.
Personnel (Electoral Rights)
asked the Secretary of State for War what steps he has taken to ensure that all those serving in the Army have been fully informed of their right to vote and have been provided with all facilities for doing so.
All men on entering the Army have their electoral rights explained to them and they are reminded of these every year. At the same time they are given facilities to register as a Service voter.When a General Election is announced a notice giving full information is displayed on all unit notice boards at home and commands overseas instruct voters how to record their votes. For the forthcoming Election the necessary signals were dispatched by the War Office on 18th April.Details of the procedure are contained in the pamphlet "Elections—Registration and Voting Procedures," 1954, copies of which are available in the Library of the House.
Education (Land, Warsash)
asked the Minister of Education whether he will now withdraw his opposition to Mr. Cook's building on his piece of land adjacent to the school in Brook Lane, Warsash, in view of the altered circumstances.
I understand that the Hampshire County Council still expects to need this piece of land for educational purposes. The question of planning permission for Mr. Cook to build on the land is one for my right hon. Friend the Minister of Housing and Local Government.