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CTAs mean nationalization that's the clear picture now
Page 80
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BY DEREK MOSES
VEARS that some private bus undertakings may be nationalized under Mrs. Barbara Castle's plans for setting up 1: Conurbation Transport Authorities are seemingly confirmed by the latest information as to how the Authorities will be established and what powers they will hold.
It is now expected that legislation in the Transport Bill to be laid before Parliament in November will be ingeneral terms. The Bill is unlikely to establish CTAs, but will give Mrs. Castle power to make Orders setting up Transport Authorities in suitable areas.
The final decision regarding the precise delineation of areas will be decided in the light of the study being made by the Royal Commission on Local Government.
Nevertheless it has apparently been decided that as soon as the Bill reaches the Statute Book, steps will be taken to establish the first four proposed CTAs—those on Merseyside, Tyneside, the West Midlands and in Greater Manchester. Tees-side and areas in South Wales and Scotland are understood to have already made informal approaches to the Ministry regarding the possible establishment of CTAs.
Although the powers being taken by the Minister would enable her to establish Transport Authorities covering the whole country, reorganization on this scale is not envisaged in the immediate future.
Likely procedure
When legislation has been enacted the likely procedure will be for consultations to be held with interested parties in any area chosen for the establishment of a Transport Authority. If conditions are suitable, an Order establishing a Transport Authority will then be laid before both Houses of Parliament.
As already anticipated a two-tier. structure will be adopted. The order will specify numerical representation of the constituent local authorities and also provide for a basic structure consisting of a policy making board and an operating executive.
The policy board would be made up of local councillors and a limited number of the Minister's appointees; the executive board would be appointed by the policy board and have a separate statutory existence and legal ownership of the undertaking's assets although consent of the policy board would be necessary before some major decisions could be put into operation.
The order will also specify the boundaries of the Authority's area. These will be widely drawn because it is essential to plan comprehensively. After establishment the Authority's first duty will be to prepare a scheme for reorganizing public transport in its area. This scheme will be submitted to Mrs. Castle for her approval and the criterion will be the improvement of services in the area. Interested parties will have the opportunity to make representations before the draft scheme is approved.
It is now known that the Minister has definitely decided that the Authorities will operate some road passenger services in their areas. They will not necessarily operate all services. They will, however, have the power of regulation over all stage and express services within the area.
The Authorities will not need a road service licence to operate any stage or express services within their areas, but authority from the Traffic Commissioners will be required for all services extending beyond the area.
The Authorities will, as was feared, have powers of compulsory acquisition, although it is hoped that acquisitions will be negotiated on a voluntary basis. Compensation for company undertakings is expected to be on a commercial basis with a right to arbitration, while municipal undertakings will apparently be taken over on an assets and liabilities basis.
Authorization of compulsory purchase of purely private hire operators is not envisaged, though hire work will be taken over as part of an acquired undertaking. Municipal undertakings affected, particularly the smaller ones, will lose their identity although their organization might be retained at an operational level as a division of the new Authority.
Surprise omission
Rather surprisingly, the Transport Authorities will not be responsible for traffic management. Although it is understood that the Ministry has considered combining these functions it has found in practice that it will not be possible, at least before the reorganization of local government.
The MPTA considers that the establishment of CTAs will reduce contact between public transport and traffic authorities and this point is apparently conceded by the Ministry. However, traffic clauses in the Bill are expected to require all traffic authorities to have sr ecial regard to the needs of public transport.
The Traffic Commissioners will, it is understood, continue, although the new CTAs will have a relationship to them broadly similar to that enjoyed by London Transport. Because the Authorities are to be based on a political structure, they will be subject to pressures which do not fetter the Commissioners in making decisions regarding adequacy of services.
To overcome this, I understand, the operators' associations consider a right of appeal to the Transport Tribunal to be an absolute essential to protect the rights of minorities.
Heavy opposition
Opposition to all these proposals is likely to be quite heavy. One perhaps unexpected source of opposition is the highways and transport committee of the Association of Municipal Corporations. This Association has adopted a report of the committee which states that it prefers CTAs to be advisory, planning and supervisory bodies only. It feels that to go any further at this stage would only confuse the issue when the reorganization of local government is being planned.
The best framework, the AMC feels, is a joint committee consisting primarily of representatives of local authorities, British Railways and independent bus operators. Such committees should endeavour to bring about by persuasion the integration or co-ordination of transport which the Ministry believes is essential. Even if CTAs were given executive powers in the transport field they should not be allowed to dismantle existing undertakings or modify the powers of the Traffic Commissioners.
In a statement issued on Friday the Passenger Vehicle Operators AssOciation made no secret of its opposition to Mrs. Castle's plans. It is totally opposed to the plans because it does not believe them to be in anyone's interests. The classic example of what could be expected from the new CTAs was London Transport with declared losses of £4.9m. and £.5.9m. in the last two years, says the ?VOA.
Losses expected
At present this loss was met by the Government—in other words, the taxpayer. The Association said that the Minister already expects losses from the CTAs, but these were to be met by local authorities—the ratepayer. This was the difference between "nationalization" and what the Minister preferred to call "localization".
The PV0A.sees no benefit in this nationalization. "Why should services run by private operators at no cost to the community be grabbed by the Government merely in pursuit of a political doctrine?", the Association asks. "We have seen enough of 'theory government' in recent months."
The Association concludes that it believes the existing control of road passenger transport by the Traffic Commissioners is the right method. They already have statutory power to do all that the Minister is seeking to achieve. The real answer is to allow the Commissioners freedom to do their job!
Jolly Roger
Another scathing attack on Mrs. Castle's plans has come from Mr. Peter Yorke, national director of the British Omnibus Companies public relations committee. Commenting in London last week, he said: "Ever since Mrs. Castle's White Paper of last July mooting the formation of what she called Conurbation Transport Authorities—which might have meant anything or nothing—we have suspected that what she was really after was a disguised approach to full-scale nationalization.
"Now she comes out for the first time in her true colours, hoisting the Jolly Roger, and saying that this is precisely what she intends to do.
"If the Minister seriously proposes to carry out this major dislocation of the industry she should at the very least have the grace to spell out what advantages she foresees for the travelling public, and why these are to be expected, the more so since she recently said that we are long past the day when public transport can be run successfully on the cheap."
tie concluded: "It is extremely disappointing to find the Minister insisting on this wholly ideological approach after all she has previously said. The last thing the bus industry wants at this moment is to be turned inside out."