§ 70. Colonel WEDGWOODasked the Parliamentary Secretary to the Ministry of Transport what total compensation for economised directors has been passed by the tribunal as to be paid by the Western Railways group for amalgamating the six small railway companies into that group; whether these compensated directors do or do not lose the right to free travel; and whether the tribunal has passed any compensation yet to men who have been economised out of their work?
§ Mr. NEALThe scheme provides for the payment, with the consent of the proprietors, of a total sum of £54,500 out of the assets of the vested companies as compensation among directors who suffer loss by the abolition of their office. In reply to the second part of the question, the scheme contains no provision with regard to free travel. The, issue of passes to directors or others is, as the hon. and gallant Member is aware, a matter within the discretion of the companies. In reply to the third part of the question, the scheme, in accordance with Section 3 (i), (f) of the Railways Act, incorporates the provisions contained in the Third Schedule of the Act with respect to the compensation of existing officers and servants.
§ Colonel WEDGWOODWhen the tribunal was considering the granting of this enormous compensation of £54,000, 955 did they, or did they not, take into account whether directors were to get free railway passes for the rest of their lives?
§ Colonel WEDGWOODDid they, then, decide on this sum, which comes out of the pockets of the taxpayers, without considering that vital question?
§ Mr. NEALThis sum does not come out of the pockets of the taxpayers, but out of the pockets of the shareholders, and the claim being an agreed one, it would not have been relevant for the Committee to have considered that question.