HC Deb 01 November 1920 vol 134 cc57-9W
Mr. RAPER

asked the Minister of Transport why the £36,000,000 stated to be in the hands of the railway companies as a reserve against arrears of maintenance cannot be used now to reduce the extra deficit of the railways of from £2,000,000 to £3,000,000 a week?

Sir E. GEDDES

The sums in question have been paid to the railway companies progressively throughout the War under the railway agreements as payments on account of maintenance which it was not possible to carry out under war conditions, and is part of their invested funds. The agreements in regard to arrears of maintenance are, as the hon. Member is probably aware, now being considered in detail by Lord Colwyn's Committee.

Mr. HIGHAM

asked the Minister of Transport if the Committee appointed to report on the best ways and means of defining the railway agreements was set up by his Ministry, and was it set up by agreement with the railway companies; and does he hope that its findings will assist him in saving money for the taxpayer or will result in such savings as will reduce fares?

Sir E. GEDDES

The Committee referred to was appointed by myself, and the railway companies were not consulted, nor was there any need to consult them. I hope that the investigations of the Committee will elucidate the very complicated position and that their Report will assist me to secure that the interests of the taxpayer under such agreements are still further safeguarded. The hon. Member will understand that the Committee is dealing with outstanding matters under the agreements rather than with the cost of operating the railways. As to future fares, I have replied to the hon. Member under Question 66.

Mr. HIGHAM

asked the Minister of Transport if the fees of legal representatives of the railway companies, presenting the companies' case before the Rates Advisory Committee and in opposing the Government at the Law Courts, are paid by the Government?

Sir E. GEDDES

As regards the cost incurred by the railway companies in presenting their case through counsel before the Rates Advisory Committee, I am advised that the amounts in question are under the Railway Agreements chargeable as a working expense debitable to the Government. Generally speaking, legal expenses are a charge to working expenses under those agreements and are borne by the Government, but each case must be dealt with on its merits, and for obvious reasons I do not wish to be committed to any general admission of State liability. No case of a charge against the Government in respect of the cost of litigation by a railway company against the Government has yet occurred.