HC Deb 27 July 1964 vol 699 cc225-6W
Mr. Costain

asked the Minister of Transport what proposals he has received under Section 13(4) of the Transport Act, 1962, from the London Transport Board about the exercise of its powers to manufacture; and whether he has approved these proposals.

Mr. Marples

I have received from the London Transport Board the following proposals, which I have approved without modification:

PROPOSALS FOR THE EXERCISE OF THE LONDON TRANSPORT BOARD'S POWERS OF CONSTRUCTION, MANUFACTURE AND PRODUCTION UNDER SECTION 13 OF THE TRANSPORT ACT, 1962

1. The Board's general policy is not to manufacture railway rolling stock or other items of plant and equipment required for the purposes of their undertaking, but to seek competitive tenders from as wide a field as possible, within both private and nationalised industry. Only in the event that the Board's requirements for major items could not be met in this way would they consider exercising their powers under the Act to manufacture such items.

2. It is nevertheless the Board's policy to manufacture certain spare parts and minor pieces of equipment and materials where this course enables a more efficient and economical use to be made of the workshop capacity which it is necessary to provide in any case for the normal purpose of maintaining the plant and equipment of the undertaking or where it is otherwise more economical than purchasing such spares, equipment or materials from outside sources.

3. The Board would propose to manufacture certain minor items for other Boards or their subsidiaries or for the subsidiaries of the Holding Company where this is advantageous to both parties and where it can be done within the limits of the workshop capacity established for the maintenance of the London Board's own rolling stock, equipment or parts.

4. The Board will contince to generate a proportion of the electric current required for the operation of their undertaking and to supply electric current for the operation of certain sections of the Railways Board's lines used by the London Board's trains where the two Boards are satisfied that this is the most practical and economical course.