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DRAFT STATEMENT TO BE MADE IN THE HOUSE OF COMMONS
As a result of the recent increases in railway wages and other
substantial increases in their costs the British Transport Commission
estimate that at current levels of charges there will be a deficit on their
net revenue for 1951 of £25 millions. This sum is, of course, in addition
to their accumulated deficit on net revenue which amounted at the end of
1950 to £40 millions.
Under the Transport Act the Commission are required to secure
that their revenue is not less than sufficient for meeting charges properly
chargeable to revenue taking one year with another. For this purpose they
are required to submit draft charges schemes to the Transport Tribunal
Pending the coming into force of such schemes Section
for confirmation.
82 of the Act empowers me, in order to meet just such a situation as has
arisen, to make regulations authorising an increase of charges if I think
it expedient to do so, with a view to securing a sufficient revenue to the
Commission. Before doing so, the Act requires me to consult, and consider
the advice of, the permanent members of the Transport Tribunal.
In the light of their financial situation the Commission have asked
me to exercise my powers under this section with a view to an immediate
increase of 10 per cent in railway freight charges, parcel rates, and dock and
canal charges. The total yield of this increase in a full year is estimated
at £20 millions, As required by the Act I have consulted the permanent
members of the Tribunal and expect shortly to receive their advice.
This procedure is intended only as an immediate relief to the
Commission and to prevent an undue enlargement of their deficit during the
period required for the settlement of their charges schemes. The Com-
mission propose to submit such schemes covering passenger fares both in
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