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The Government's Plan for Passenger Transport

15th August 1952, Page 50
15th August 1952
Page 50
Page 50, 15th August 1952 — The Government's Plan for Passenger Transport
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Which of the following most accurately describes the problem?

By Our Legal Adviser CLAUSE 17 of the Transport Bill is one of the largest in the measure, and it is perhaps surprising that such important legislation dealing with the whole field of road passenger transport, including the running of contract carriages, should be compressed into one clause. Although its shape may be altered by the time the Bill receives the Royal Assent, it is worth examining in a little detail because of its great importance.

First, there are to be no area schemes. These were originally intended for submission by the British Transport Commission to the Minister of Transport and were to promote integration and co-ordination of road and rail services in the areas in question. The present Government's chief reason for the abandonment not only of such schemes, but of the power and machinery to promote them, is the lack of progress already made in bringing area schemes forward and the intense opposition which they would evoke. It is a case of the unlamented passing of something which never reached fruition. .

By Section 65 (1), (3) and (4) of the Transport Act, 1947, the Commission was expressly exempted from the licensing provisions of sections 72 to 76 of the Road Traffic Act, 1930. Now, by the second paragraph of clause 17, this exemption is taken away and the Com= mission, like anyone else, must apply for and obtain licences to run bus services. Where, however, a particular bus service is actually 'being operated by the Commission at the date when the Bill becomes law, its continued operation without the necessary licence will be permitted so long as the Commission has filed an application for a licence within a month after that date.

Licensing Not A Formality This does not mean that, in relation to such services, the application is a mere formality: the Bill clearly states that they will be permitted "until that application is determined by the Licensing Authority." The Commission, in other words, must take its chance in the queue with private operators, and the fact that it is providing a service now is no guarantee that it will be permitted to continue to do so, although as a matter of practice it is obvious that such a situation will weigh heavily in its favour.

'Paragraph 3 makes the general rule that the Commission is not to run contract carriages, subject to certain exceptions. Before dealing with these, the preliminary point should be taken that the " Commission " probably would not include subsidiary companies of its own which it controlled by reason of being the major Shareholder. In law, a company is an entirely distinct " person " from a shareholder, although, in fact, the latter may control the company. There is no identity of personalities for legal purposes. Any restriction rniposed on the Commission, therefore, will probably not apply to its subsidiary companies.

The exceptions enable the Commission to run contract carriages on roads in what are known as the 'London Passenger Transport Area, and on roads 10 miles outside it, except in Kent, where the limit is B16 five miles. This area is defined in the London Passenger Transport Act, 1933, by reference to a map incorporated with that Act ad which, therefore, cannot be amended or enlarged wittout another Act.

There is also reference in the Bill to what is known as the "London special area," which is as much of the London Passenger Transport Area as lies within the London Traffic Area, which is itself defined in the London Traffic Act, 1924, and with which it is not co-extensive. The confusion involved in the use of these different areas and terms to describe them is greatly to be regretted.

Outside Special Area

As regards the "London special area," the Commission is not required to be subject to the licensing provisions of the Road Traffic Act, 1930, in respect of services which it provides, if these are wholly within that area. If any service lies partly inside and partly outside the area, it need apply for a licence only in respect of the part outside.

Whilst it alters considerably the powers of the Commission in regard to buses and contract carriages and revives the restrictions originally imposed on the London 1Pas.sevger Transport Board by its own Act of 1933, Clause 17 does not strip the London Transport Executive of any of its other powers. There is no doubt, however, that on any service which the L.T.E. may run outside or partly outside the London special area, and for which it has to apply for a -licence, the Licensing Authority may impose such conditions as to fares, etc., as he thinks fit. In no other respect does the Executive appear to be affected in its operation or powers.

Paragraph 5 of the clause is designed to prevent the Commission acquiring directly, or even indirectly by means of share buying, any other undertaking carrying on passenger road transport. In the former case, the prohibition is absolute. In the case of gaining control by the purchase of shares, the Commission may not do so without the Minister's consent, but the acquisition of minority shareholdings is permissible without the Minister's authority.

Far-reaching Power

Moreover, there is a sort of reciprocal provision in the next paragraph in relation to the disposal by-the B.T.C. of controlling shareholdings, but this is not concerned only with a voluntary disposal of shares, but also with a compulsory disposal by order of the Minister. He is given power—and a very far-reaching power this must be—to order the Commission, with the Treasury's consent, to dispose of such shares when and how and to whom he may direct.

These provisions as to buying and selling whole undertakings, or shares in other companies, although clearly meant to protect smaller operators from being gobbled up by the Commission or by any of its subsidiaries, may have curious and unlooked-for -results: What is tobe the position of a small operator whose-area is encircled by services provided by the Commission, or by one or

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