HC Deb 09 February 1977 vol 925 cc1430-1
21. Lord James Douglas-Hamilton

asked the Secretary of State for Transport whether he will make a statement on his policy as regards the National Freight Corporation's purchase of overseas companies.

27. Mr. Grylls

asked the Secretary of State for Transport whether he will make a statement on his policy as regards the National Freight Corporation's purchase of overseas companies.

Mr. William Rodgers

I have nothing to add to what I told the House during the course of the debate on 20th January.

Lord James Douglas-Hamilton

Does the Minister agree that it is no part of the National Freight Corporation's remit to reform the road haulage organisation in France?

Mr. Rodgers

I certainly agree with that, but I do not think that the NFC should be restricted, as a public corporation, in exercising commercial judgments of a kind that the private sector is free to exercise. This was a matter that we discussed fully on 20th January.

Mr. McNamara

When my right hon. Friend meets the chairman shortly, will he discuss with him the recent closure of the freightliner terminal in Hull and explain to him that Hull is an area with very high unemployment and very depressed conditions, which cannot be served from Leeds, and that it would be a good idea if, occasionally, the corporation stopped taking these premature decisions without looking at the implications for regional policy generally and for the hopes of an upturn in industry and transport facilties in those areas?

Mr. Rodgers

I do not think that the chairman would regard Hull as being overseas, which is the burden of the question.

Mr. McNamara

That is the way things look.

Mr. Rodgers

As my hon. Friend knows, the chairman is fully aware of the feelings aroused by the decision that has lately been taken. My hon. Friend and others of my hon. Friends have been assiduous in making their views known, and very properly.

Mr. Moate

Although it may be right for managers of nationalised industries to be free to take commercial decisions, how are they to be held accountable for commercial failures? What was the total loss incurred in the French operation?

Mr. Rodgers

It is believed that the cost—this was published in the NFC's annual report and accounts for 1975—was about £11.4 million. The accountability of the NFC, and all nationalised industries, is to this House, through the Secretary of State. It is right that we should discuss it. We have the ultimate power of decision about the major strategic decisions that are represented by the policies of this corporation and others.