§ Mr. Ron Lewisasked the Secretary of State for the Environment if he will make a statement about the financial position of the National Freight Corporation.
§ Dr. GilbertThe serious economic recession and the effect of inflation on rail costs—to which I referred in a statement on 24th July dealing with British Rail's finances—have adversely affected the National Freight Corporation and its two rail-linked companies, National Carriers Ltd. and Freightliners Ltd. in particular. Despite various measures the Corporation took to improve its trading position during 1975 it expects to record a loss of some £30 million for that year. It is clear that in the short run it would be unable to meet its financial obligations without Government support. I have, therefore, agreed as a temporary measure to provide up to £8 million in grants during the early months of 1976, in the light of the fact that an urgent review is being undertaken into the ways in which the Corporation can eliminate its deficit, which is not covered by any statutory authority. A supplementary estimate will be presented to the House for approval as soon as possible. Sums made available meanwhile will be issued from the Contingencies Fund.
I shall make a further statement about the financial arrangements for the National Freight Corporation when these studies are completed. I shall also be making a further statement about the British Rail freight deficit in the near future.