HC Deb 17 March 1976 vol 907 cc1316-8
18. Mr. Ridley

asked the Secretary of State for the Environment what he now expects to be the loss of the National Freight Corporation for 1975–76.

Mr. Crosland

I have nothing to add to the reply given by my hon. Friend the Minister for Transport to the hon. Member for Carlisle (Mr. Lewis) on 21st January 1976.

Mr. Ridley

That does not answer the Question. Is the Secretary of State aware that it is estimated by some to be in the region of £30 million? Why is it that public enterprise always loses money, and what does the right hon. Gentleman intend to do about it?

Mr. Crosland

The figure has not been estimated. It has already been announced that the loss for 1975 will be about £30 million. As the Minister for Transport has already told the House, a firm of Consultants has been appointed to report by the end of April on the National Freight Corporation. In addition, the transport policy review document, to be published next month, will suggest a number of options for the future of the NFC.

Mr. Cryer

Does my right hon. Friend agree that the losses could be cut considerably if the NFC were integrated with the railway network to create an integrated freight transport system? Does he not agree that this would be ideal if such an organisation came under a chairman elected by the workers in the NFC rather than under an appointed political whiz kid or retired general?

Mr. Crosland

I have no intention of appointing retired generals to manage any part of the transport system. The question of whether the NFC should come back into British Rail has been much discussed over recent months. It will be raised in detail in the consultative document and we shall seek opinions on the matter. Whether we should revert to the situation which existed a few years ago is an open question.

Mr. Fry

May I be of slight assistance to the right hon. Gentleman now, even if I can be of no use to him next week? Would he like to tell his hon. Friend the Member for Keighley (Mr. Cryer) that one of the reasons the NFC has made severe losses was the original commitment to British Rail, and that it is having to divert resources to road to reach even the present deplorable figures? There is criticism because freight is being transferred from road transport to the railways.

Mr. Crosland

I am distressed to hear that the hon. Gentleman will give me no help next week. For all I know, my hon. Friend the Member for Keighley (Mr. Cryer) may not give me any help either—it seems unlikely. The difficulties of the NFC and British Rail freight as a whole in the last 12 months have deep-seated causes, including that of the economic recession. I am extremely dissatisfied with the present state of rail freight, but I strongly believe that neither rail nor road freight should be subsidised by the taxpayer.

Mr. Les Huckfield

Is my right hon. Friend aware that many workers in the NFC are worried about its rôle? Is he satisfied that it is still playing its rôle as an agent of co-ordination or integration, or does he want it to go on being the sponsor of competition?

Mr. Crosland

I am not satisfied with the position as a whole. My hon. Friend was chairman of the Socialist Commentary Group which produced an authoritative report and he will agree with me, having written part of that report, that the question of how NFC should operate is difficult and complicated. It is a matter on which I want to have the greatest possible consultation in the months ahead.