HC Deb 19 April 1967 vol 745 cc572-4
22. Mr. Galbraith

asked the Minister of Transport what is the capital investment involved in setting up the container production line at Derby Workshops which she approved before 7th March; and what is the budgeted percentage return on capital.

Mrs. Castle

Before approving this project at a cost of £250,000 I satisfied myself that it was economically sound. It would not be appropriate to publish the detailed basis of my assessment.

Mr. Galbraith

That is a most extraordinary Answer. The right hon. Lady says that she has satisfied herself that it was economically sound, but that she will not tell the House what the figures were which enabled her to come to that decision. Why not? What were the figures?

Mrs. Castle

Certainly I am not prepared to do that. I satisfied myself from the Board's evidence that the new plant would produce containers to their specification more cheaply than outside suppliers and I certainly do not intend, within the overall financial target which is appropriate for nationalised industries, to give snippets of information which might benefit their competitors.

Mr. Park

Is my right hon. Friend aware that the decision to establish the container production line at Derby was received with great satisfaction in that area as recognition of the outstandingly high level of efficiency of the railway workshops there? Is she also aware that the continuity of work which she has guaranteed in this way will come as a tremendous boost to the morale and confidence of the workers in that industry?

Mrs. Castle

Yes, Sir. In my recent visit to the workshops at Derby I was very pleased to notice the very high standards of efficiency and I was glad to have been able to give this continuity of work on a strictly competitive basis.

Mr. Francis Noel-Baker

Is my right hon. Friend aware that outside Derby rapid progress in containerisation is primarily welcomed as a vital step in the modernisation of transport and that hon. Members on this side of the House who represent railway constituencies in all parts of the country have complete confidence in the Board's financial management?

Mrs. Castle

I am grateful for my hon. Friend's words. Of course it is true that the railway workshops, not only in Derby but elsewhere, can and must make a considerable contribution to the country's economy.

Sir J. Eden

Will the right hon. Lady at least assure the House that the accounts of these workshops will be shown separately so that hon. Members can have the chance to identify the true costs involved?

Mrs. Castle

Yes, Sir. I have discussed with the C.B.I. the position which will accrue when we extend the affairs of the workshops into manufacture for outside purposes and not merely for their own concerns, and I have made it quite clear that the competition will be fair and that the workshops should demonstrate this by publishing information comparable mutatis mutandis with that which companies are required to publish. They have nothing to fear or to hide in this matter.

Mr. Galbraith

Is the right hon. Lady aware that the only conclusion which we can draw from her reluctance to give these figures is that there is not a proper return on the money involved?

Mrs. Castle

My conclusion is that the hon. Gentleman is so prejudiced that he hates to see a nationalised industry succeed in anything.

Mr. J. T. Price

Will my right hon. Friend and the House as a whole take note of the fact that, as soon as a nationalised industry begins to be successful and to produce the results which people demand, all we get in the House is "knocking" from the other side? Will she resist all these blandishments, because I have been to Derby recently and the—

Mr. Speaker

Order. This is Question Time; we cannot have speeches.