HC Deb 08 February 1956 vol 548 cc1657-8
15. Mr. Ernest Davies

asked the Minister of Transport and Civil Aviation whether he will guarantee the British Transport Commission against any loss arising from disposal of road haulage vehicles which the Transport Fund is inadequate to meet on the termination of the Transport Levy.

Mr. Watkinson

No, Sir. Nor will I require them to surrender any surplus which may arise from disposal of road haulage vehicles, taking into account the proceeds of the levy.

Mr. Davies

Since the levy was imposed for the purpose of making good any loss which the B.T.C. suffered as a result of the sell-off of the vehicles, are not the Government under an obligation to make good any loss which arises from this policy, which B.T.C. never wanted and still does not wish to pursue?

Mr. Watkinson

These are very technical matters which, I believe, we may have an opportunity to debate in the House tomorrow.

Mr. Davies

Does not the Minister agree that the question of the loss to be suffered by the British Transport Commission is not a technical matter but one of £ s. d.? The British Transport Commission has a very large deficit at present, and if the loss on these sales is not made good the deficit will be increased and the position made far worse.

Mr. Speaker

It seems to me that this subject might be in order in tomorrow's business.

41. Mr. Ernest Davies

asked the Minister of Transport and Civil Aviation, in estimating the loss on disposal at £12¼ million, what amount was taken as receivable on account of sales of the Transport Commission's vehicles and other assets; and what was the book value of such assets.

Mr. Watkinson

The estimate of the loss on disposal of vehicles was based, not on the total book value of the Commission's assets, but on the average price per vehicle expected to be realised having regard to experience so far gained. In the case of premises and stores, it was similarly based on experience of sales which had been completed.

Mr. Davies

Since, then, the loss estimated at £12¼ million is, by coincidence, the same amount as is expected to be paid in levy, does not the Minister agree that there is a possibility that there will be a deficit in the Transport Fund when it is wound up next year if tomorrow's Bill goes through? Will he, therefore, review the estimate in the light of future sales, and will he reconsider the shocking decision he announced to the House today that the British Transport Commission will have to bear any deficit that arises?

Mr. Watkinson

This is the best actuarial estimate the experts can make at the moment, but I quite agree with the hon. Gentleman that it is only an estimate; I think we had better wait to see what the final figure is.