HL Deb 16 December 1964 vol 262 cc439-40

2.48 p.m.

BARONESS SUMMERSKILL

My Lords, on behalf of my noble friend Lord Morrison of Lambeth, I beg leave to ask the Question which stands in his name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they propose to reverse the decision of the former Minister of Transport prohibiting British Railways from tendering for the manufacture of equipment for private firms.]

LORD LINDGREN

My Lords, the British Railways Board have re-submitted their proposal to tender for the manufacture for their customers of privately-owned railway equipment which is to be used on the nationalised railways in this country. My right honourable friend has approved the proposal. With permission, I will circulate in the Official Report the full terms of the proposal.

Following is the Board's proposal referred to in the above Answer: It is quite possible that rail customers may increasingly wish to own their own rolling stock and containers; particularly the latter. The Board are advised that so long as privately-owned railway equipment is manufactured for use on the Board's railway system or on that of any other Board (within the context of Section 1 of the Transport Act, 1962) which has railways, the Board can themselves lawfully tender for the manufacture of that equipment; otherwise they cannot. It is the intention of the Board, therefore, to seek opportunities to tender for the manufacture for their customers of privately-owned railway equipment which is to be used either on British Railways or on the railways of any other Board.

BARONESS SUMMERSKILL

My Lords, am I to understand that this is a complete reversal of the policy of the previous Government?

LORD LINDGREN

Yes, my Lords.

LORD CHESHAM

My Lords, will the noble Lord be surprised to learn that I regard this matter as a most important one? I am not complaining that such a Statement should be made in reply to a Starred Question, but it may be necessary to raise this matter again on another occasion so as to probe it more deeply. Meanwhile, may I ask the noble Lord whether the Government are aware that there is an important sector of manufacturing capacity in the private sector, carrying out most useful export functions, which I understand the Government are anxious to encourage? May I ask whether the grave risk to their export effort has been taken into account?

LORD LINDGREN

Yes, my Lords. Competition will make private industry more competitive.

LORD CHESHAM

My Lords, may I ask whether the Government have also taken into account that it is as much their duty to preserve employment among those workers engaged in the private sector as in the nationalised sector?

LORD LINDGREN

Yes, my Lords.