HC Deb 13 December 1932 vol 273 cc304-5

Amendments made: In page 136, line 1, leave out the word "Minister," and insert instead thereof the words "Rates Tribunal."

In line 42, leave out the word "Minister," and insert instead thereof the words "Rates Tribunal."—[Mr. Pybus.]

Motion made, and Question proposed, "That this, as amended, be the Eighth Schedule to the Bill."

9.8 p.m.

Mr. C. WILLIAMS

This is a long Schedule, and we are going on very well, and I think I might ask the Minister to give us a short and clear description of the pooling scheme. We have not had it yet, and I am sure he must have the information. It is not quite right to ask us to pass this Schedule without a clear statement of exactly what it is that has been arranged.

9.9 p.m.

The ATTORNEY-GENERAL

I will certainly give my hon. Friend a short explanation. Whether it will be clear I am not so sure, but I hope it will be. In substance, the pooling arrangement is one under which the Traffic Board pay into the pool the whole of their receipts. The main lines concerned also pay into the pool their receipts in respect of their suburban traffic, but not, of course, their receipts in respect of their main line traffic. Those two contributions make the pool. There are certain charges which are defrayed out of the pool—the charges for the carrying-on of the pool, and from the pool, or rather the railway companies' share of the pool, is paid any sum which is necessary to implement the guarantee of the rates of interest upon the assented stock. My hon. Friend is perhaps aware that the assented stock is something which the holders of ordinary stock in the Metropolitan Railway may receive and enjoy the interest on for a term of years—3½ per cent. for 15 years and 3 per cent. for 10 years. That is a short account of the pool, and I hope it is sufficiently clear.

Mr. C. WILLIAMS

What happens if there are no profits?

The ATTORNEY-GENERAL

The word I used was "receipts." It is not a question of profits. It is the receipts that go into the pool.

Mr. WILLIAMS

My hon. and learned Friend has pointed out that one of the parties who contribute to the pool guarantees something. They cannot guarantee it if they have not sufficient, receipts to cover their expenses, and something over with which to give that guarantee.

The ATTORNEY- GENERAL

The receipts which will be paid into the pool will so far exceed the maximum liability under the guarantee that there is no possible danger of that. I can assure my hon. Friend of that. I have forgotten the precise figure, but the maximum liability under the railway companies' guarantee is far under the total sum that will be paid into the pool by the railway companies in any event.