§ Mr. Dobsonasked the Secretary of State for Transport what representations he has received from the British Railways Board concerning the volume of traffic likely to be diverted from rail to road as a result of the introduction of heavier lorries, and the consequent loss of revenue to the railways; and if he will make a statement.
§ Mr. EyreBritish Rail said originally that it would not expect rail freight traffic levels to be affected significantly by the introduction of heavier lorries as proposed by the Armitage inquiry, provide that the terms of competition between road and rail were fair and in particular that the heaviest category of lorries met their full track costs. The Armitage inquiry also concluded that loss of traffic to the railways was not likely to be very significant. 29W Subsequently, in February of this year, BR said that some 2.5 million tonnes of existing rail traffic might be diverted. This is 1.6 per cent. of total BR freight traffic. On this assumption lost annual revenue would be between £25 million and £35 million, including lost pricing opportunities on traffic which will be retained.
I hope to make a further announcement shortly about the Government's comprehensive proposals on heavy lorries. The terms of the announcement will influence any assessment of the effect on British Rail.