§ Mr. Cohenasked the Secretary of State for Transport whether he will now make a statement on his proposals for changes in the financial structure of the National Freight Corporation as forecast during the debate on transport policy on 21st November.
§ Mr. William RodgersAs I announced on 21st November, I propose to transfer to the British Railways Board the National Freight Corporation's controlling interest in Freightliners Limited.
I shall also be putting forward shortly proposals for a financial reconstruction of the Corporation. These will include provision for a write-down of the Corporation's debt to the Government from its current level of £153.1 million to £100 million. This will allow for a write-off of all the Corporation's debts which relates to Freightliners, and of all but £5 million of that attributable to National Carriers Limited, which has been a serious loss-maker in the past.
National Carriers also has to make large extraordinary payments annually, deriving from the time when it belonged to the British Railways Board. I propose that these payments—to meet the cost of travel concessions and of historic pension deficiencies—should from now on be reimbursed by the Government. The arrangements for funding these pension deficiencies would provide initially for the Government to reimburse the Corporation for the annual payments which they are currently making, with further provision for full funding if the Government so decide, subject to Affirmative Resolution of the House. The effect of these various measures will be to relieve National Carriers of charges currently averaging about £10 million a year.
31WIn addition, I propose a tapering grant of up to £15 million until the end of 1981 towards National Carriers' capital expenditure requirements. The company needs to be able to invest if it is to adapt in line with changing market requirements and to ensure a secure basis for long-term viability. From 1982 onwards NCL will be expected to be fully self-supporting.
These proposals will mean that the NFC's other subsidiaries—Roadline, BRS, etc.—will not need to cross-subsidise NCL. They will therefore be put in a more secure position and will be able to devote all their resources to developing their separate businesses.
§ Mr. Norman Fowlerasked the Secretary of State for Transport (1) whether he will make a statement on the working of the British Transport (Compensation to Employees) Regulations 1970, in view of the Court of Appeal decision in Tuck and Others v. The National Freight Corporation;
(2) whether he will estimate the cost to the National Freight Corporation if officers compulsorily transferred under the
PERSONAL INJURY ACCIDENTS AND CASUALTIES Numbers 2nd April 1974 to 31st December 1974 1975 1976 January to 30th June 1977 A B A B A B A B Accidents Fatal … … … … - - - - - 2 - - Serious … … … 3 3 2 3 1 4 1 2 Slight … … … … 7 10 5 9 5 8 1 3 All … … … … 10 13 7 12 6 14 2 5 Casualties Killed … … … … - - - - - 2 - - Seriously injured … … 5 5 3 5 2 6 1 2 Slightly injured … … 13 23 10 16 10 19 4 6 All Seventies … … … 18 28 13 21 12 27 5 8 A—At the Darrington crossroads. B—On a one-mile stretch of the A1 including the Darrington crossroads.
§ Dr. Edmund Marshallasked the Secretary of State for Transport what is now the estimated cost of constructing a flyover at Darrington crossroads on the A1 trunk road in West Yorkshire; and how this compares with earlier estimates made in respect of this scheme at intervals since October 1971.
§ Mr. HoramThe estimated cost of this scheme at November 1977 prices is £1.8 million. This can be compared with previous estimates as follows:
32WTransport Act 1968 from British Railways to the Corporation are held to be entitled to the salary increases they would have received had they remained with British Railways.
§ Mr. William RodgersAs the Court of Appeal decision may be the subject of an appeal to the House of Lords, I regret that I can neither make a statement nor give any estimate of cost at the present time.