CAB129-37 — Page 716

Page 716

The Commission have accordingly, as a matter of urgency, applied to me to exercise my powers under Section 82 of the Transport Act to authorise an increase in certain of their charges. The broad effect of the increased powers of charge sought is as follows:-

Railway Charges:

A general increase of 16.2/3 per cent in the present charges applicable to freight train traffic and to parcels, other merchandise and livestock carried by passenger train or other similar service.

Dock Charges:

(a) Dues on coastwise vessels and cargoes the present

general increase of 25 per cent over charges in force on 31st August, 1939, to be raised to 50 per cent.

(b) All other rates, dues and charges - the present

general increase of 75 per cent over charges in force on 31st August, 1939, to be raised to 100 per cent.

It is estimated that these increases would yield additional revenue to the Commission of some £28 millions a year and I share their view that an addition of this order is necessary if the Commission are to meet current net revenue deficiencies without any provision for reserves or for making good past losses.

4.

I

The Commission do not propose any increase in passenger fares, as it

as it is their view that this would not result in an improvement in receipts on the main line railways. am convinced that they are right on this point, apart from the effect that any increase in railway passenger fares would be likely to have on public opinion.

The Commission inform me, however, that they intend shortly to submit a charges scheme dealing with passenger fares, both road ard rail, in the London Passenger Transport Area. The increased revenue which they hope to obtain as a result of this scheme would be required in addition to the £28 millions referred to above.

5.

The normal procedure laid down in the Transport Act for determining the Commission's charges is the submission by them of charges schemes to the Transport Tribunal. The preparation of such schemes, however, must inevitably in the case of railway charges take a considerable time, and pending their introduction. I am empowered by Section 82 of the Transport Act to make regulations authorising an increase in charges if I think it expedient to do so with a view to ensuring a sufficient revenue to the Commission. The Section is, in fact, desired to deal with just such a situation as has arisen. Before making regulations, however, I am required to consult with and consider the advice of the permanent members of the Transport Tribunal, acting as a Consultative Committee.

6.

I have had informal discussions with the Chairmen of the Tribunal and of the Commission and propose to ref:r the matter to the Appentage 716 of 188ltative Committed in the terms given in

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