§ 54. Sir W. DAVISONasked the Minister of Transport whether he is aware of the anxiety and alarm prevailing among all those who have money invested in the great railway undertakings of the country consequent on the continued decrease in the value of their property caused by the uncertainty as to future Government action; and whether he can make any statement which will relieve such uncertainty and stop the depreciation in value of the property of a body of citizens who, through no fault of their own, have suffered heavy losses by reason of their property having been taken over by the Government?
62. Colonel NEWMANasked the Minister of Transport whether he can assign a reason for the persistent and disastrous fall in the capital value of the railway stocks of the United Kingdom since the creation of his Ministry; and what steps does he propose to take to remedy such a state of affairs?
§ Sir E. GEDDESIt will be convenient to answer these questions together. Railways stocks have shared in the general depreciation of capital values consequent upon the War, and I do not agree that loss from this cause which railway shareholders have suffered is in any way due to their War-time agreements with the Government. No section of the community can claim to be protected against the effect of general economic changes due to the War, and the railways are fortunate in having enjoyed a guaranteed income based on the most prosperous year in their history, together with upkeep of their property at the same high standard of 1913, the companies being relieved by the community as no other industry has been relieved from all additional costs due to rise in prices during the years of guarantee. This guarantee, which was given in 1916 and preceding years, does nut expire until the 15th August next.
I may further point out that the depreciation in railway stocks began long before the formation of the Ministry of Transport, and in the case of debentures, which are comparable securities, has been no greater than that which has occurred in consols themselves. The Government's 528 proposals for the future of the railways, which have already been published in outline, will be embodied in a Bill to be introduced early this Session.
§ Sir W. DAVISONIs the right hon. Gentleman aware that there is a depreciation of railway securities since 1914 of something between £480,000,000 and £500,000,000, and that since the Armistice there has been a fall of from 20 to 30 points in the stocks of many railways? Does he not think it right to give an assurance that dividends will be guaranteed until a reasonable time after the railway companies have received their property back, so that they can put their house in order after the Government administration?
§ Mr. W. THORNECan the right hon. Gentleman say who will get the benefit of the reduction of railway servants' wages in consequence of the reduction in the cost of living?
§ Sir E. GEDDESThe taxpayer. As to the point raised by my hon. Friend (Sir W. Davison), the matter is so controversial that he had better leave it to be dealt with in the Bill, and not by question and answer.
§ Sir W. DAVISONI am asking only whether some guarantee will be given them for a little time after the railways are handed back. Without making suggestions as to whether it is for their benefit or not, will they have their dividends guaranteed?
Sir F. HALLIs it not a fact that the railways have had special attention and care given to them in the past by the continuance of their dividends, and does the right hon. Gentleman think it advisable that further special attention should be given to the railways by continuing payment of dividends, irrespective of whether they are earned or not?
§ Sir E. GEDDESThese are matters of absolutely prime importance to the country, and it would be quite impossible for me to give any such undertaking. The House will decide what is to be done with the railways.