HC Deb 29 April 1947 vol 436 cc1767-70

  1. 1. in respect of any vehicle vesting in the Commission or any other body by virtue of the scheme, the scheme shall make provision for payment to the person theretofore carrying on the undertaking (in this Schedule referred to as "the Transferor") of compensation equal to the cost as at the date of transfer of replacing the vehicle by a new vehicle of similar type, adjusted however—
    1. (a) by deducting where one or more complete years have elapsed between the date on which the vehicle was registered under the Roads Act, 1920, and the date of transfer, fifteen percentum of the said cost in respect of the first year, and in respect of each subsequent year fifteen percentum of the said cost as reduced by the total deductions falling to be made in respect of the previous years; and
    2. (b) if it is established that the physical condition of the vehicle is materially better or worse at the date of transfer than the normal physical condition "of a vehicle of the same type and age, by adding to or deducting from the said cost, as reduced by the deductions, if any, falling to be made under sub-paragraph (a) of this paragraph, such amount as fairly represents the difference between the value of the vehicle and the value of a normal vehicle of the same type and age.
  2. 2. In respect of any property vesting in the Commission or any other body by virtue of the scheme other than a vehicle, the scheme shall make provision for the payment to the transferor of compensation equal to the amount which the property would fetch if sold in the open market, estimated as at the date of transfer and as if this Act had not been passed.
  3. 3. For the purpose of the Income Tax Act, 1945, the transfer effected by the scheme shall not be deemed to be a sale.
  4. 4. In respect of the total or partial cessation of business caused to the Transferor by the operation of a scheme, the scheme shall make provision for payment to the Transferor of eight times the average net annual profit calculated by reference to the average net annual profit for the ten financial years of the undertaking immediately preceding the date of transfer.
  5. 5. For the purpose of calculating the sum payable under the preceding paragraph, the provisions of paragraphs 2 to 6 of the Ninth Schedule to this Act shall apply, subject to the following modifications
    1. (a) for the word "three," whenever that word occurs, there shall be substituted the word "ten";
    2. (b) references to the Commission shall be construed as including reference to any body 1768 other than the Commission to whom the undertaking or part of the undertaking of the Transferor is transferred;
    3. (c) references to the notice of acquisition shall be construed as references to the scheme;
    4. (d) paragraph 4 shall have effect as if the words "of the Transferor," were inserted after the word "property," where that word secondly occurs;
    5. (e) paragraphs 5 (3) (b) shall have effect as if the words "of the Transferor," were inserted after the word "property."
  6. 6. The scheme shall make provision for payment to the Transferor in cases where
    1. (a) the activities of an undertaking, part of which is transferred by a scheme, consist immediately before the date of transfer partly of the operation of passenger road services by public service vehicles within the area to which the scheme relates and partly of other activities within or outside the area; and
    2. (b) the undertaking so far as it consists of those other activities, or any of them, is carried on on or after the date of transfer; and
    3. (c) it appears that the proportion which the overhead expenses incurred in carrying on that undertaking bear to the total expenses incurred in carrying it on will be greater on or after the date of transfer than before that date by reason of -the transfer resulting from the scheme.
  7. of such compensation in respect of severance as fairly represents the burden of that increase over the five years beginning with the date of transfer."

The Deputy-Chairman (Mr. Hubert Beaumont)

I think it would be to the advantage of the Committee if we took the four Amendments in the name of the hon. Member for Huntingdon (Mr. Renton) together.

Mr. Renton

I beg to move, in page 132, line 4, after the first "case". to insert: not being the case of a scheme under section sixty-one of this Act As you have suggested, Mr. Beaumont, I think it would be convenient if we took this and the next three Amendments together. Yesterday, the Committee spent a good deal of time discussing compensation for railways, and road haulage undertakings of local authorities, to be taken over. We come now to consider compensation for those road passenger transport undertakings which are not owned by local authorities. As hon. Members will readily appreciate, there is a considerable amount involved in the compensation of those undertakings, most of which, presumably, will eventually, though, perhaps, not for many years, be taken over by the Transport Commission. It is difficult to learn the total sums involved, but it will give the Committee some idea when I mention that the various undertakings possess, between them, perhaps £15 million of subscribed capital, and that their total capital assets may be from £40 million to £50 million.

This is a series of Amendments of great substance; and, perhaps, it is fortunate that they can all be dealt with together as one problem, instead of being separated, as some of our other problems have been. With regard to the other types of undertakings that have had to be compensated, railways, canals, and so on, there has been, with the one exception pointed out by the hon. Member for Rugby (Mr. W. J Brown), some kind of basis of compensation, some principle, some method. But with regard to the compensation of these road passenger undertakings, there is, in my submission, no method at all. It is entirely a matter for the discretion of the Minister. He is to be the judge in his own cause, and there is to be no appeal from the decision which he makes in the matter. Not only is that the position, but that uncertainty may prevail for many years to come, because we do not know how long it may be, as I say, before these undertakings are to be nationalised.

I may remind hon. Members in a few words of the background of the Bill, with regard to taking over these road undertakings other than those owned by local authorities. Hon. Members will recall that under Clause 61 the Minister has power to confirm an area scheme for taking over the passenger transport services in a particular area; and the way in which he exercises that power is prescribed by the Eighth Schedule, to which I direct the attention of hon. Members, because it is by these Amendments to the Eighth Schedule that we are attempting to offer what we consider will be a workable and fair scheme in substitution for the mere discretion of the Minister. In the Eighth Schedule we find that the Minister may not confirm the scheme unless provision is made for compensation, and that condition is also applied by Clause 61. We need not trouble much about the first paragraph of the Schedule, because that deals with compensation to be received by local authorities; and we find in it that the compensation is to be assessed, as nearly as possible, in accordance with the principles laid down in Part II of the Bill, which deals with railways and canals. The passenger undertakings of local authorities are to be dealt with in the same way as railways and canals.

When we come to paragraphs (1) (b) and (c) of the Schedule we find the way in which operators, other than local authorities, are to be dealt with. The effect of those paragraphs (b) and (c) is two-fold. First, the Minister decides what sort of transfer of the undertaking has taken place. I submit that that means, in effect, that he himself can decide what form of transfer is to take place, because the transfer cannot take place unless he approves the scheme under which it is to be effected. He can decide that the transfer is to be treated as though it was a transfer under Part II, dealing with railways and canals; or he can decide that it is to be a transfer under Part III dealing with road haulage transfers— road haulage of goods. It is quite obvious that a shrewd and, from the point of view of the Exchequer, a sensible Minister will decide upon that form of transfer which is most beneficial to the finances of the Government. He will not necessarily bear in mind, being judge in his own cause, that form of transfer which is most fair to the people concerned. I would commend the argument to the attention of hon. Members because millions of pounds' worth of their constituents' property and of British people's property is at issue in this matter, and it is not a matter to be treated lightly at all. The Minister can, if he likes, decide that the form of transfer is not in any way analogous with a transfer under Part II or Part III. It is for him to decide and nobody else has any say in the matter.

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