HC Deb 23 January 1963 vol 670 cc71-3W
Mr. G. Wilson

asked the Minister of Transport whether he has given any directions to the Transport Holding Company under Section 29 (4) of the Transport Act, 1962, as to the conduct of their business.

Mr. Marples

I have given formal directions to the Transport Holding Company in the following termsThe Minister of Transport (hereinafter referred to as 'the Minister'} in exercise of the powers conferred upon him by Section 29 (4) of the Transport Act 1962 (hereinafter referred to as 'the Act') hereby gives the following directions to the Transport Holding Company (hereinafter referred to as 'the Holding Company'):—

1. The Holding Company shall exercise their control over Star Bodies (B.T.C.) Ltd., Bristol Commercial Vehicles Ltd., and Eastern Coach Works Ltd., so as to ensure that the productive capacity of any of these companies shall not exceed the productive capacity of that company as at 1st January 1963.

2.—(1) The Holding Company shall exercise their control over each of their subsidiaries so as to ensure that the subsidiary in question does not except with the consent of the Minister—

  1. (a) borrow money (whether temporarily or otherwise) from any person other than the Holding Company or any other subsidiary of the Holding Company, or
  2. (b) raise money by the issue of shares or stock to any person other than the Holding Company or a subsidiary of the Holding Company of which the subsidiary in question is itself a subsidiary.

(2) Sub-paragraph 1 (a) of this direction shall not apply to any transaction carried out by Thos. Cook & Son Ltd. or any of the subsidiaries of that company in the ordinary course of their business.

3. The Holding Company shall not, except with the consent of the Minister borrow money by way of temporary loan from any person other than the Minister or a subsidiary of the Holding Company.

4.—(1) The Holding Company shall not, except with the consent of the Minister, lend money to or give a guarantee for the benefit of any person other than a subsidiary of the Holding Company.

(2) The Holding Company shall exercise their control over their subsidiaries so as to ensure that any such subsidiary does not except with the consent of the Minister lend money to or give a guarantee for the benefit of any person other than the Holding Company or any other subsidiary of the Holding Company.

(3) The restrictions imposed by sub-paragraph (2) of this direction shall not apply to any transaction carried out by Thos. Cook & Son Ltd. or any of the subsidiaries of that company in the ordinary course of their business.

5. The Holding Company shall, and shall exercise their control over their subsidiaries so as to ensure that their subsidiaries shall, in framing and carrying out proposals involving substantial outlay on capital account, act on lines settled from time to time with the approval of the Minister.

6. The Holding Company shall, and shall exercise their control over their subsidiaries so as to ensure that their subsidiaries shall, in the exercise and performance of any of their functions as to training, education and research act on lines settled from time to time with the approval of the Minister.

7.—(1) In these directions the expression 'subsidiary' has the same meaning as it has in the Act.

(2) Any reference in these directions to a consent shall be deemed to include a reference to a consent given for any case or description of cases specified in the consent and to a general consent and to a consent subject to conditions.

8. These directions are subject to any further directions which may from time to time be given by the Minister to the Holding Company in exercise of the said recited powers.

9. These directions shall come into effect on 1st January, 1963.

ERNEST MARPLES,

Minister of Transport.

20th December, 1962."