Fares and Freight Rates (Hansard, 24 July 1957)

§ 38. Sir D. Robertson
asked the Minister of Transport and Civil Aviation if he is aware that under nationalisation the old companies' method of charging railway fares and freight rates at so much per passenger mile and per ton mile gives rise to anomalies; and if he will give a general direction to the British Transport Commission to put in hand an immediate inquiry into the possibility of adopting an alternative method.

§ Mr. Watkinson
The relationship of railway charges to costs raises very complex issues which engage the attention of the British Transport Commission, and which have been examined at length in the court of the Transport Tribunal. My hon. Friend has written to me on this subject and I shall be replying to him as soon as possible.

§ Mr. Hector Hughes
In considering the alternative propositions before him, will the Minister reconsider the present arrangement with regard to tapering rates in order to ensure that the north-east of this island is treated as fairly as the rest of the island?

§ Mr. Watkinson
This is a most complicated matter, as I think my hon. Friend knows, and I will write to him as soon as I can.

§ 39. Sir D. Robertson
asked the Minister of Transport and Civil Aviation if he will give a general direction to the British Transport Commission to postpone application of the latest increase of 10 per cent. on freight rates until 1st October.

§ Mr. Watkinson
No, Sir. I should not be justified in interfering with the measure of discretion now granted to the Commission, to treat freight charges on a sound commercial basis in relation to costs.

§ Sir D. Robertson
In view of the very serious consequences to the nation as a whole and to British Railways because of the traffic which it will lose, does not my right hon. Friend think it would be a good plan to get a small investigating team of business men and accountants to look at the earnings and the losses?

§ Mr. Watkinson
I think my hon. Friend realises that any increases on British Railways now are related to the new charges scheme which allows them to negotiate, if necessary, a figure below the permitted increase, and therefore my advice is that interests who feel that more business could be secured by not increasing these charges should make their case to the Commission.