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Second Thoughts on the Transport Bill

13th March 1953, Page 29
13th March 1953
Page 29
Page 29, 13th March 1953 — Second Thoughts on the Transport Bill
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Which of the following most accurately describes the problem?

B.T.C. Vehicle Allowance Increased: Company Plan Adopted

said, be a Board to represent partially or primarily the purchasers. The amendment was negatived.

During discussion of a later amend ment, Lord Bridgeman said that he wished to know whether the Minister was going to lay down any Policy in such a way that a minimum price would be specified for vehicles to be sold. All these vehicles certainly had a book value in the books of the B.T.C. or the Road Haulage Executive, and if that hook value was reached, there would be no loss.

Lord Swinton said he imagined that the Commission would have in their minds a price they thought they ought to get and a kind of minimum reserve, but he was sure that the last thing they would do was to disclose it. He thought the wisest thing would be to leave the B.T.C. alone and not lay down for them how they should assess the price.

More Vehicles for II.T.C.

An amendment moved by Lord Teynham, increasing from six-fifths to five-fourths the total unladen weight of motor vehicles allowed to be transferred to companies under the control of the Commission, was accepted by the Government.

The Earl of Selkirk, Lord-in-Waiting, moved a new Government clause on the procedure for the sale of assets. There were, he said, three stages—the creating of the companies, their position when created, and their sale.

When the companies were formed— and they could he unlimited in size— the Commission would be in the position of a holding organization and would have to obtain licences for vehicles operating in these companies. They could do so under their own name or under the name of the companies.

Going Concerns The companies would be free to carry on business and they.,would be essentially going concerns. They could sell their own property, but could not sell it back to the Commission unless the Disposals Board agreed,

The sale would have to be in one parcel, but it could be by tender, by agreement, or by any other way which the Board might indicate. The Board would have to be satisfied that the price was reasonable.

He emphasized that the scheme was permissive. The object was to create an organization which would enable the companies to be taken over straight away and normal operations continued without any interruption.

For the Opposition, Lord Lucas gave a welcome to "an entirely new principle—a principle which some of us have always wanted."

He asked whether the Government would give an assurance that sufficient companies would be formed to absorb a major proportion of those assets which could be sold only through a company structure to realize a reasonable price.

Lord Swinton replied that the company method was likely to be the exception rather than the rule. It would be a useful adjunct to the normal method provided in the Bill for disposal by units.

Lord Bridgeman moved an amendment to the new clause to permit the Commission to sell part of the share capital, instead of the companies being sold in one parcel. There might, he said, be cases where a buyer might not be able to put down all the money for the whole capital, and he might like to have an option on a group of shares or to pay in some form of instalments.

Lord Swinton replied that this position was appreciated.

The Earl of Selkirk, speaking later, said it was not necessary that the money should all be paid "on the day." The sale could be arranged by tender, or by agreement or in any other way which the Board would permit. But it was essential that the Board should agree the price.

Lord Bridgeman withdrew his amendment, Credit for Buyers

Speaking of payment for the road haulage businesses, Lord Swinton remarked that arrangements had been made between the United Dominions Trust, Ltd., and the Road 'Haulage Association to provide credit facilities for buyers. [The Commercial Motor, February 6.] No doubt other finance companies would extend credit facilities.

Lord Bridgeman said he hoped that no obstacle would be put in the way of the Trust or of any others who supplied credit for buying the companies if they applied to the Capital Issues Committee for permission to raise new capital.

The Government's new clause was agreed and the debate continued.


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