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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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