Denationalization "Quite Impracticable"
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DENATIONALIZATION w a s 'described as "quite impracticable" by Mr. S. C. Bond, M.Inst.T., F.I.T.A., when he read a controversial paper at the Industrial Transport Association's annual congress, last Saturday. His subject was "The New Era." He said the assumplion that the Conservative Party would be returned to power at the next election was " highly risky."
The speaker, who is chairman of the Nottingham branch of the LTA., dealt mainly with the problem of the co-ordination of inland transport and the effect of transport costs upon the country's economy. Referring to the report of the British Transport Commission for 1948, Mr. Bond said that it revealed a remarkable feat of organization in a short time and that it gave an example of skilled management in the highest degree.
He submitted that the provision of transport services was an end in itself and that the Commission, the Minister of Transport, or trade and industry should not allow the need for the accounts of the B.T.C. to balance to become more important than the primary object of its existence—the provision of an efficient and integrated system of inland transport.
The Commission had had no guidance from the Transport Act as to how the provision of a better service under public ownership was to be achieved, neither did the Act recognize the causes of the difficulties which the Commission had inherited. The immediate remedy, it might be suggested, would be for the Commission to increase charges, but the report pointed out that such a step might not increase revenue and would certainly raise costs of production.
Decline in Traffic Unfortunately, a factor bound to aggravate the situation was the probability of a further decline in the total volume of traffic offered as a result of the economic difficulties through which the country was passing.
Mr. Bond outlined the Commission's problems. The country's transport system, he stated, was capable of carrying far greater quantities of traffic than it was ever likely to be called upon to transport in times of peace. Consequently, existing facilities were far from adequately used and the cost per unit carried was forced up.
Nonetheless, it was proposed id increase still further the existing facilities by the provision of an extensive system of motorways throughout the country.
Dealing with the question of rates and charges as they related to competitive road and rail services, the speaker said that it was far from being solved and that there was no certainty that a rates structure which would raise gross revenue to a maximum would also enable the Commission, to operate profitably.
510 If the B.T.C. were to make ends meet, it might be driven by sheer , necessity to take certain steps--for instance, in regard to road charges or C-licensees—which it would otherwise to be loath to take.
Many people were apprehensive that this principle might be carried too far and that one form of transport might be used to bolster another that was unprofitable. The railways did not pay because of their heavy capital expenditure, rising operational costs and common-carrier and other obligations.
The Commission enjoyed no mono poly of inland transport. The B.T.C.'s report stated with disarming frankness that the right of the C-licence holder was a circumstance that would vitally affect the policy of the Commission in planning its services.
"Revealing Admission" "Such an, admission is revealing indeed," declared Mr. Bond. "So far we do not seem to have much idea as to how the Commission intends to tackle these extremely difficult and fundamental problems. I should like to be satisfied that at an early date the Commission recognizes and is about to tackle these formidable tasks. . . From the contacts that I have, on both the rail and road sides at quite high levels, I confess that I have seen no evidence yet that this is the case."
Before discussing possible future lines of policy, Mr. Bond referred to suggestions about "denationalization." Propoials of this sort Were based on the assumption that the Conservative Party would be returned at the -next General Election. This was a highly risky supposition, he suggested, bearing in • mind the present Government's record in the Parliamentary by-elections in. the past four years.. Mr. Bond condemned the Conservative Party's statement of policy, published in July,
as . incomplete and ill-considered, betraying an astonishing ignorance of the issues involved.
Denationalization was quite impracticable, he said. The Conservatives should lay emphasis on the need for various measures of control and the protection of the traders' interests.
Mr. Bond said that be had taken a prominent part in opposing the principle of nationalization, but. now that it had become, law, the efforts of all should be directed towards making the nationalized "tranSport syitem a suceeSe The more successful it was, the greater the benefit everyone would derive.
Road transport should be exploited where rail services were outmoded, such as on little-used branch lines. jt should be employed on collection and delivery . services over wide areas from the railheads. It must be borne in mind, however, that a choice between two means for transport could hardly be insisted upon by users unless the volume of traffic was such that both means could operate profitably.
The construction of extensive motorways was criticized by the speaker, who submitted that the overriding need was for the curtailment of capital expenditure. He recommended that the proposal should be suspended and that Instead money spent on improving existing facilities. On the question of drawing up a rates structure by the Commission, the
speaker said that there was a choice of
four approaches:—(a) Maintenance of the combined bases by way of an adaptation of the existing charges; (b) institution of a rates structure based purely on commodity values; (c) a structure based on the cost of services; and (d) imposition of arbitrary charges to induce the use of one form of transport rather than another.
Mr. Bond dealt with each in turn and stated that the best would be a structure based on the cost of services. This would reflect the merits of the services and a financial attraction would be provided. It would also afford the only way of permitting the continuance of short-distance road transport and unrestricted C-licence operation.
• C-Licensees Not Competitive
Answering questions, Mr. Bond said that he did not think that the Minister of Transport was seriously concerned by the rise in the number of C-licensed vehicles, which could be attributed to increases in the volume of business and replacements. The majority of Clicensed transport was engaged in shortdistance work and did not compete with the services of the Road Haulage Executive.
Lord Gifford, the president, speaking at the congress dinner last Friday, emphasized the importance of educating young people in the profession of transport.
Mr. D. T. Jones, M.P., parliamentary private secretary to the Minister of Transport, said he did not think that the position with regard to C licensees 'had changed materially since the Minister made his first announcement while the Transport Bill was being passed. Pressure to protect other means for transport against wrongful operation under C licences had been exerted by many Members of Parliament. The Minister had no evidence of serious breaches at present, but the Government was left free to take any action necessary.