HC Deb 07 June 1967 vol 747 cc1034-6
38. Mr. Galbraith

asked the Minister of Transport whether it is her policy that investment in British Railways' workshops should show a comparable return to what might be expected in private industry.

Mrs. Castle

I satisfy myself that the investment is economically justified. The rate of return on individual projects will vary according to circumstances, as it does in private industry.

Mr. Galbraith

That Answer is not satisfactory. Does the right hon. Lady consider at the time whether every investment which she authorises would give the same return as the money would get if it had been invested in private industry, or are there considerations other than the financial return at the back of her mind?

Mrs. Castle

I made it perfectly clear that the railway workshops are capable of competing on a fully commercial basis. That is the policy and the railway workshops themselves would not want anything else.

Mr. Tom McMillan

Would not my right hon. Friend agree that not only can British Railways workshops compete with private enterprise price-wise but that the quality of containers produced by the Glasgow workshops is probably the finest in the country?

Mrs. Castle

There is no doubt at all that in the production of containers the Railways Board can compete with anybody.

Sir C. Osborne

I welcome the right hon. Lady's assurance that these railway workshops will be operated at a profit, but why should she assume that this section of the railway system can be made to work at a profit when all the other parts have continually made losses?

Mrs. Castle

It is not true that all the other parts have continually made losses. Nevertheless, we keep the accounts separate and we are therefore able to satisfy ourselves on this.

Mr. Francis Noel-Baker

Can my right hon. Friend explain why the hon. Member for Glasgow, Hillhead (Mr. Galbraith) pursues this vendetta against railway workshops? Is it not a fact that when he was at the Ministry of Transport the railway workshops were grossly penalised, whereas incompetent and often financially unstable private firms were favoured and supported by the Tory Party? Have we not had enough of this kind of allegation? Does not the Minister know that the railway workshops would be delighted to publish separate accounts and to have them investigated down to the last penny?

Mrs. Castle

I entirely agree that hon. Members opposite have never believed in fair competition for the nationalised industries.

Mr. Galbraith

Is not the right hon. Lady aware that I have not pursued a vendetta against the railway workshops? The vendetta has been against the right hon. Lady for not giving the full facts.

64. Mr. William Hamilton

asked the Minister of Transport what steps she intends to take to safeguard the future of railway workshops situated in development areas.

84. Mr. Adam Hunter

asked the Minister of Transport if she will give a general direction to the Railways Board that no further closures of railway workshops are to take place without prior public inquiry and subject to her consent.

Mrs. Castle

The future of particular workshops is a matter for the Railways Board and it would not be appropriate to issue a general direction. The Board has always appreciated the need to take account of the effect of major changes on the development areas and keep in close touch with the Government when such changes seem likely.

Mr. Hamilton

Does my right hon. Friend realise that there is a good deal of disquiet in Fife at the projected running-down of the railway workshops in Town-hill and, in view of the fact that about £750,000 has been recently spent on these workshops, does she not agree that it would be a great tragedy if this run-down, still more the closure of these works, took place at this particular time?

Mrs. Castle

I am aware of the disquiet to which my hon. Friend refers. I understand that the Railways Board is still consulting its Scottish Region on the future of this workshop, and it is too soon for me to be able to say anything.

Mr. Hunter

Is my right hon. Friend aware that the railway workshop at Townhill is one of the most efficient workshops in the country? I understand that it can work at a cost of one-third less than that of any other workshop in the country. Would not the Minister agree that something should be done urgently to dispel the idea that this workshop should close?

Mrs. Castle

I am sure that the Railways Board would not lightly discard any asset which was valuable and likely to earn a profit.