CAB129-53 — Page 16

Printed for the Cabinet. June 1952

Page 16

SECRET

C. (52) 204

19th June, 1952

CABINET

Copy No.

73

TRANSPORT BILL

MEMORANDUM BY THE SECRETARY OF STATE FOR THE CO-ORDINATION OF TRANSPORT, FUEL AND POWER

On 21st April-C.C. (52) 41st Conclusions, Minute 3 (1)—the Cabinet approved the policy for road haulage and for the reorganisation of the railways set out in C. (52) 110 and announced in the White Paper published on 8th May; and authorised the Minister of Transport, in consultation with me, to prepare a Bill to give effect to that policy. On 19th May the Prime Minister appointed a Committee under my Chairmanship, consisting of the Home Secretary, the Chancellor of the Duchy of Lancaster, the Minister of Transport and the Minister of State for Economic Affairs, to assist the Minister of Transport in the preparation of the Bill and its conduct in Parliament.

2. A Bill has been drafted accordingly under the guidance of the Committee, and I submit a copy (print No. 163–5) herewith for the consideration of my colleagues. The Bill embodies the policy set out in the White Paper. It requires · the British Transport Commission to dispose of the assets of the Road Haulage Executive in association with a Road Haulage Disposal Board. The assets are to be sold as operable units (called "transport units"), carrying a five years' "A" licence. It provides for the establishment of a Transport Fund to be fed from the proceeds of a levy on road goods vehicles, out of which the Commission would be compensated for losses arising from the disposal of their road haulage undertaking, and for net losses arising from the diversion of traffic from rail to road. The Bill also provides for the reorganisation of the railways, and for amendments as to the constitution of the British Transport Commission and their general functions. In the matter of charges schemes, greater latitude is to be given to the Commission to enable the railways to quote rates competitive with road haulage (see also para- graph 11 below). Provision is also made for the Commission to meet increasing costs by limited increases of charges subject to subsequent approval by the Transport Tribunal, and subject to the overriding powers of the Minister.

3. In the course of drafting the Bill questions have arisen on which the policy had necessarily not been fully laid down in the White Paper, or in the discussions leading up to its issue. The Committee have taken decisions on these questions and it is with these questions and the decisions on them that the remainder of this memorandum is mainly concerned. We may find it necessary to suggest some amendments to the Bill before it is presented to Parliament, in the light of consul- tations with the interests mainly affected, in particular the British Transport Commission. The Commission have, however, already shown that they are prepared to co-operate in giving effect to the Government's broad policy.

Railway Interests in Road Transport

4. The earlier view was that, apart from providing necessary feeder services, the railways ought not to be permitted to enter the road haulage business by purchasing assets of the Road Haulage Executive. We now think, however, that,

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