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SUBSIDIES 'MUST GO BEAGLEY

14th October 1977
Page 6
Page 6, 14th October 1977 — SUBSIDIES 'MUST GO BEAGLEY
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Which of the following most accurately describes the problem?

BEST way of maintaining a healthy transport system in Britain is by destroying Government subsidies for transport industries.

This would in turn mean a greater amount of private investment in transport, which is what the industry needs.

In his presidential address to the Chartered Institute of Transport, this week, T. L. Beagley said that although a cut in subsidies was needed, to do so would be "extremely difficult".

But he added, the best solution to cutting down subsidies would be to concentrate subsidies "on those social needs for transport that would not otherwise be adequately covered.

Mr Beagley also accused the policies of price restraint in the 1970s for the high level of subsidies today.

He said the price restraint policies, when costs were rising fast "have been the main contributory cause to the size of the rail and less revenue subsidies that now cause such anxiety.

"I suggest that the damaging consequences of price restraint need to be more fully recorded."

The most important thing that transport industries could do would be to forge closer links with Government.

But, with changing governments, it was often difficult to maintain, or even implement, long-term strategies.

The success of transport must depend "above all on the closest possible understanding between the civil servant in transport and the transport industry people."

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