Pullman Car Company (Hansard, 19 May 1954)

§ 22. Mr. Nabarro
asked the Minister of Transport and Civil Aviation if he will give a general direction to the British Transport Commission to discontinue their negotiations for the acquisition of the Pullman Car Company.

§ 34. Mr. Teeling
asked the Minister of Transport and Civil Aviation if he will give a general direction to the British Transport Commission not to purchase the Pullman Car Company.

§ Mr. Lennox-Boyd
I have no power to give such a direction, which I could not regard as one of a general character and, even if I had, I should not think it appropriate in this case. The proposal is the result of negotiations freely 2081 entered into between the British Transport Commission and the directors of the Pullman Car Company, on the initiative, I understand, of the latter. The directors have commended the proposal to their shareholders, and it is now awaiting the shareholders' decisions. The main reason which has weighed with the Commission in making their offer to acquire the company is that they consider that this is the best way of ensuring the continuance of the Pullman car service on a sound long-term basis.

§ Mr. Nabarro
While thanking my right hon. Friend for that statement and recognising that he has no statutory power in this matter, may I ask him whether he is aware that the overwhelming majority of the general public will deplore the disappearance of the last vestige of private enterprise on the railways, and that we shall no longer anywhere be able to get a decent meal on long-distance trains?

§ Mr. Dalton
Is the Minister aware that the overwhelming majority of the general public do not travel by Pullman?

§ Mr. Lennox-Boyd
In answer to both of these questions, this is now before the shareholders of the Pullman Car Company, the overwhelming majority of whom will now be called upon to make a decision.

§ Mr. Teeling
Is my right hon. Friend aware that the Pullman Car Company during the whole period of the nationalisation of the railways before this Government took over was having considerable trouble, under considerable pressure, in carrying on its particular work, and am I to understand that my right hon. Friend, after all that was said during the General Election, has no power whatever to do anything to stop this ordinary private enterprise company being taken over? May I further add that the people in my constituency, to which most of these Pullman cars go, including the "Brighton Belle," will be horrified at this happening, because they do not wish to see nationalised railways taking over something that up to now has been so efficiently run?

§ Mr. Lennox-Boyd
My hon. Friend has asked me a number of questions. It is, of course, a fact, as is stated in the 2082 circular put out by the Pullman Car Company directors to their shareholders, that there are insuperable difficulties at the present time and in the foreseeable future for both parties to arrive at a worth-while solution. I do not believe that anyone on either side of the House seriously expects that the powers given to the Minister under the 1947 Act should be used in this way to interfere with the Commission's freedom to make commercial transactions freely entered into by both parties. If it is a fact that my hon. Friend's constituents fear that they will be prejudiced in this matter, I hope the advantages of the Pullman service, which are undeniable and which the Commission will continue in their present form, will be extended to other districts as well as to Brighton.

§ Mr. Ernest Davies
Is it not a fact that the company has said that it could not carry on in view of the very large capital expenditure which will be necessary to re-equip these Pullman cars, and is that not the reason why it is being taken over?

§ Mr. Lennox-Boyd
It is not being taken over. The question is now before the shareholders, who have to consider a freely negotiated offer. It is for them to consider the matter, but clearly the immense cost of re-equipping a fleet, which is getting old in parts and the franchise of which expires in 1962, must be ever present to the directors and the shareholders.

§ Mr. Teeling
In view of the quite unsatisfactory nature of the reply, I beg to give notice that I shall raise this matter as the subject of my Adjournment debate tomorrow week.