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(THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT)
SECRET
C.P.(55) 154
15th October, 1955
CABINET
60
COPY NO.
ROAD HAULAGE DISPOSALS BILL
Memorandum by the Minister of Transport and Civil Aviation
The Home Affairs Committee, when considering my detailed proposals for this Bill (H.P.(55) 65), instructed me to refer two issues to the Cabinet (H.P. (55) 12th Meeting, Item 6). In addition there is one decision of the Home Affairs Committee which I think should also be considered by the Cabinet.
2.
The Committee approved my proposal that the forthcoming Bill should include provision to amend Section 5 of the Transport Act, 1953, in order to make sale by the Company method more attractive. This would be effected both by permitting the retention of Section 5 Companies for a period long enough to enable them to show trading results, and by repealing the provision of the 1953 Act under which the sale of shares of such Companies can only be effected in one parcel. In the course of this discussion, however, some anxiety was expressed as to the possibility that the immediately pending offer for sale of the Parcels Company might result in that Company being purchased by persons who would break it up, and the view was expressed by some of my colleagues that the forthcoming offer for sale should be postponed so that it could be undertaken only with the safeguards proposed under the new Bill.
3. The Government's intention to proceed with the disposal of the Parcels Company in October was expressly stated in my statement of 21st July, the text of which was approved by the Cabinet on 14th July (C. M. (55) 23rd Conclusions, Minute 4). The Disposals Board and the British Transport Commission have been working at high pressure on the prospectus. Advertising space has provisionally been booked in the Press for 25th October and the advertising agents will, on Monday, 17th October, reserve a large amount of space for the prospectus. While it would be physically possible, if the Cabinet decides at its next meeting to postpone the sale, to cancel these arrangements there would undoubtedly be a leakage about it and a decision later this week to effect such a cancellation would be widely known to the Press. There would in any event be a considerable shock to the Disposals Board who have been working under instructions to get the Company up for sale as soon as possible.
4. I do not recommend my colleagues to postpone this offer for sale. Not only would such a decision involve a reversal of the Cabinet decision of 14th July and of the relevant part of my statement to Parliament, but it would also be taken very badly by our supporters. We have secured a general though not complete degree of acquiescence in our proposal not to
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