HC Deb 20 June 1979 vol 968 cc1295-6
3. Mr. Spriggs

asked the Minister of Transport when he expects next to meet the chairman of the National Freight Corporation.

20. Mr. Viggers

asked the Minister of Transport if he has any proposals to change the structure and public accountability of the National Freight Corporation.

Mr. Fowler

I intend to meet the chairman again very soon. In the meantime, I am actively considering ways and means of putting into effect our manifesto promise to achieve a substantial element of private investment in the National Freight Corporation.

Mr. Spriggs

Is the Minister aware that the NFC last year earned a record trading surplus? Therefore, how can he justify the Tory Party's claim that the sale of shares in the NFC will result in greater efficiency? Is this not yet another Tory Party con trick to hand over public sector profits to private sector interests?

Mr. Fowler

It is certainly not a con trick. I remind the hon. Gentleman that under the Labour Government the NFC received £82 million in grants. My impression is that many of the people who work within it welcome, and will respond to, the challenge which independence and freedom from Government interference will give them.

Mr. Viggers

In the light of press comment, may I ask my right hon. Friend to confirm that he intends to maintain the entity of the NFC as a whole as a profitable organisation and not to hive off separate parts?

Mr. Fowler

That is certainly my preference. I would prefer to achieve private investment in the NFC, constituted in broadly the same way as it now is. I gladly respond to my hon. Friend on that point.

Mr. Booth

Will the Minister say whether, in the event of the Government's succeeding in selling shares in NFC, Government grants will be paid to the NFC so that it can pay dividends to shareholders?

Mr. Fowler

I welcome the right hon. Gentleman to his important new post. I shall certainly consider his first point.

Mr. Moate

Does my right hon. Friend accept that it will give considerable reassurance to many customers and staff of the NFC to know that his preference is for maintaining the present entity and selling shares in it rather than hiving off? Does he also accept that a broadening of the equity base and the introduction of private-sector capital is a tribute to the NFC's viability and the success achieved in recent years? Will he take steps as soon as possible to implement this item in the manifesto?

Mr. Fowler

I shall certainly do what my hon. Friend asked in his last question. I believe that the NFC has an important future under our plans, and that those plans are widely welcomed within it.