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Tory Clash is Likely on State-owned Manufacturers

16th March 1962, Page 38
16th March 1962
Page 38
Page 38, 16th March 1962 — Tory Clash is Likely on State-owned Manufacturers
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Which of the following most accurately describes the problem?

FROM OUR POLITICAL CORRESPONDENT

rlA CLASH appears inevitable between the Government and some of its supporters on the " build-anything " clause of the Transport Bill, Whether the battle will be fought publicly or behind the clorsed doors of back-bench meetings depends on the Government's attitude.

Fears and doubts that the State-owned manufacturers of transport equipment will emerge buttressed by this Bill as powerful coMpetitors with free enterprise have not been allayed, and some Conservative votes against the I3ill in the Commons may possibly be cast if this point of principle is not given further consideration. The Tory dissentients believe the removal of the restrictions imposed by the 1947 nationalization Act is completely alien to Conservative principles.

There are three companies involved: Star Bodies (13.T.C.), Ltd. (a subsidiary of B.R.S.), has a capacity of 450 lorry bodies a year, and now turns out 300; Bristol Commercial Vehicles, Ltd. (one of the Tilling Group), has a capacity of 1,073 bus and haulage units a year, and turns out 1,000; and Eastern Coach Works, Ltd. (a Tilling subsidiary), products up to its capacity of 750 bus bodies a year.

These companies are strictly featherweights when compared with the total commercial vehicle output of 460,000 vehicles a year, Ministers declare. To try to limit these small companies without any regard to the sensible and wise use of the taxpayers' resources would be absurd, the Government (or, more correctly, the Transport Minister) says.

By placing these three companies within the Holding Company. and giving them powers to manufacture for any of the Boards or the Holding Company. the intention is, I understand, that they shall continue to function exactly as now—two manufacturing for the Tilling Group, the other for B.R.S.

The Minister will be able to exercise control over total manufacturing capacity and over manufacturing activities, so as to check "abuses."

This is where the Conservatives join issue. Who is to say what a Socialist Minister of Transport, armed with this Bill, might do in years to come?

But while there will be a flurry and a shower of sparks—and perhaps the chance of a Government concession—the vast bulk of the Tory party believe too much in this Bill to allow it to be jeopardized on what is still a hypothetical issue.

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Organisations: Tory party
People: Tory Clash