Competition

HC Deb 23 January 1980 vol 977 cc424-6

24. Mr. Ioan Evans

asked the Minister of Transport what action he proposes to avoid wasteful competition in the transport industry.

Mr. Fowler

My policy is to encourage fair competition in order to improve efficiency and widen consumer choice.

Mr. Evans

Will the Minister try to integrate our road and rail transport system and get the heavy traffic onto the under-used railways? Will he also pursue the policy of electrifying main line railways to conserve energy for the future?

Mr. Fowler

I am entirely in favour of fair competition between British Rail's freight service and road haulage, but I am not in favour of directing freight from road to rail. That would be a foolish policy and one that was even rejected by the previous Government.

Mr. Cryer

Does the Minister accept that his policy of curtailing investment is leading British Rail to consider the closure of freight-only routes, like the Wood-head route across the Pennines? Does he further agree that that will mean a shift away from rail freight to road transport, which is retrogressive.

Mr. Fowler

I do not accept that. I have already answered the question twice about the Woodhead tunnel. We are not curtailing investment as the hon. Member suggests. We are maintaining it at the level of the last Government.

Mr. McCrindle

Is it not a fact that the very success of British Rail's intercity services has forced the passenger road transport industry to look again at its fares? Is that not, in essence, the best possible outcome of competition?

Mr. Fowler

Absolutely. I entirely agree with my hon. Friend. Under the Transport Bill we shall be able to have further competition between coach operators on long-distance services. I believe that competition like that makes sense, and is in the best interests of the travelling public.

Mr. Cohen

Will the Minister accept that the competition to which he has referred has resulted in duplication and has had wasteful economic and social consequences? Are the Government prepared to look again at these consequences?

Mr. Fowler

The alternative policy that the hon. Member suggests is one of having a transport central planning authority, which would be vastly wasteful. Also, it was entirely rejected by the previous Labour Government during five years in office.