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Demolishing a Fallacy

8th February 1963
Page 70
Page 70, 8th February 1963 — Demolishing a Fallacy
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

i4 1111-0AD operators get free tracks, whereas the railways IAhave to own, build and maintain their tracks ", says Lord Stonham (January 18).

We had hoped that this hoary fallacy had been buried once and for all by the all-party Select Committee on Nationalized Industries, which reported in July, 1960— " The argument that railways should be relieved of the track costs is based upon the belief that the burden of them is unfair when viewed in the context of the railways' competition with road users. But in fact the road user pays each year in taxes for the use of his vehicle and its fuel considerably more than the annual cost of road maintenance, signalling and construction." (Para. 401.)

The report also stated:—

". . b.ecause though the railways have to provide their own track, they get a number of benefits in consequence of so doing. As sole users, they can impose better standards of speed, density and safety on their operations than the road operator can." (Para. 126.) PETER YORKE,

National Director, The British Omnibus Companies London, W.I. Public Relations Committee.

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People: PETER YORKE
Locations: London

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