IMF( ash slashed
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PROPOSED cash grants the National Freight Corpo don contained in the Gove ment's Transport (Financ Provisions) Bill, have he slashed from E50million E3Omillion.
But by the middle of ru year — the term envisaged: the grants to last — the N: will still have been IN E50million by the Governmt because it has already 1-, E20million this year in pi ments outside the scope of Bill.
Speaking during the deb on the third reading of the : in the Commons, Transp Under-Secretary John Hor said that the grants were "o a temporary blood trans sion.” He said that a compl financial restructuring ex cise would be carried out the NFC and the cum grants should not be confu: with the "blood transfusion Mr Horam revealed tl there would be legislati before the House during next session of Parliament carry out the rebuilding.
He also said that payme of E20million made to the N so far this year would I count towards the figure in • Bill. He said he wanted figure cut by the same fig, to keep the 18-month gr level at E50million.
During the debate, Fal, sham MP Roger Moate p tribute to the managemi and unions at the NFC who, said, had done a lot to see ti the company runs efficier in the future.
He admitted that there a strong case for the N grant to be reduced fr E50million — but he suppor another amendment to the calling for the reduction to increased to E25million.
• MPs ignored the effects inflation and questioned granting of E50million to NFC when the corporat had been granted only f million for its first five ye operations. Mr Moate commented: suspect that other paYme have been made particul arl■ respect of pensions in the nterim.
"We are entitled to know he total cash being paid by the Government to support the corporation in the interim period," he said.
He added that the Govern ment had been asked for a £43million grant in 1968 when the NFC had been set up and he called that "substantial" — now, he said, Parliament was being asked for amounts well in excess of the original amount. All parties agreed that no one should subsidise the freight operations of any company using the roads, and he stressed that no one underestimated the problems faced by the NFC in putting operations on a sound footing.