NFC cash plea
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MUCH more than "imaginative" help is needed in the financial reconstruction of the National Freight Corporation, as laid down in the Transport Bill, if the NFC is going to compete on a more equal basis with private industry.
Giving evidence before a House of Commons Select Committee, chairman of the Corporation Sir Dan Pettit added that there was still a basic overvaluation of the NFC and its assets.
Evidence was also given of the financial performance of the NFC for 1977.
Despite only a small increase in business, with gross turnover up from £337 million in 1976 to £392 million, there was, said Sir Dan, a significant increase in profitability. Estimated trading profit for 1977 was £13.5 million, which was a £9.5 million trading improvement on the previous year.
But after payment of pension deficiencies and interest on capital (the latter £1.4 million higher in 1977), the net result was expected to be a loss of £10 million.
This compared with a loss of £15.2 million in the previous year.