Modernisation Programme (Hansard, 30 October 1957)

§ 27. Mr. D. Jones
asked the Minister of Transport and Civil Aviation whether he is now in a position to give the result of the British Transport Commission's reassessment of the cost of the modernisation programme, after taking into account the changes in prices and all other factors which change the scope of the programme.

§ Mr. Watkinson
The British Transport Commission estimates the cost of the work covered by the plan prepared in 1954 at £1,500 million. This revision takes full account of changes in price levels and of major technical decisions reached since the plan was first published, as well as the reassesment of costs which detailed planning has made possible.

§ Mr. Jones
Can the right hon. Gentleman say what part of the £170 million which the Chancellor announced yesterday is to be devoted to the modernisation programme is to be used for ordinary replacements on which the railways spent more than £100 million last year?

§ Mr. Watkinson
If the hon. Gentleman wants an answer to that question, he had better put it down.

§ 31. Mr. Ernest Davies
asked the Minister of Transport and Civil Aviation what changes it is proposed to make in 198 the railway modernisation programme in view of the reduction in capital investment; and what delay in its fulfilment will result.

§ Mr. Watkinson
It will not now be possible to accelerate the programme in the next two years as much as the British Transport Commission had planned, but because the programme is ahead of schedule the level of investment will not fall below that forecast in the Command Paper, Proposals for the Railways, and there will be no delay in the fulfilment of the programme as a whole.

§ Mr. Davies
Is it not a fact that the actual amount which will now be spent and the actual authorisations made in the next few years will be less than had been planned for, and does that not mean that the Commission will be in serious difficulties in regard to revenue as a result? Can the Minister state precisely whether there is going to be a cut-back in the plans which have been made for expenditure on railway modernisation this year and next year?

§ Mr. Watkinson
The Chancellor of the Exchequer gave the figures yesterday, which I entirely accept. They are very large sums of money. I expect the Commission to get the best value for them, and that is its job.

§ Mr. G. R. Strauss
Can we have a little more information on this matter, because at the moment we are rather in the dark? Yesterday the Chancellor of the Exchequer said that he was going to cut the payments to Transport Commission services to £170 million a year. The proposals in the White Paper for railway modernisation amounted to £135 million and £140 million for the next two years. Can the Minister somehow reconcile those figures so that we may be assured that the modernisation programme will not be affected, as he has just said in reply to the Question?

§ Mr. Watkinson
If the right hon. Gentleman likes to put down another Question, I shall be only too happy to answer it. I can help him a little bit by repeating what I have just said and what I said in July, that the programme is well ahead of schedule. Therefore, the payments are higher than were originally, anticipated when the plan was made. These are therefore allowed for, and that 199 is the reason for the higher figure. Therefore, the higher figure really shows the amount of acceleration which the Commission has been able to achieve, and which is very necessary.

§ Mr. Davies
Does it not also include the greater costs to which the Minister referred, and will there not be a reduction in the amount of materials consumed and of work done as a result of increased prices?

§ Mr. Watkinson
I think that that question had better be put down. There is a detailed answer. I am quite satisfied that the Commission has a fair share of the investment programme. It knows I now expect it to make the best possible use of it, and it will do.