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B.R.S. Disposal Cannot be Rushed

18th December 1953
Page 45
Page 45, 18th December 1953 — B.R.S. Disposal Cannot be Rushed
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Which of the following most accurately describes the problem?

Board Warn Minister : Tribute to R.H.A.: B.T.C. to Keep 3,559 Vehicles: Discussions on Sale of Units in Companies

"WE feel it right, in fairness to the [British Transport] Commission and to prospective purchasers, to express our clear and unanimous view that the disposal of this undertaking at a proper price and to the proper people cannot be rushed. The Commission assure us that they are endeavouring to carry out their duty of disposing of the existing undertaking as quickly as is reasonably practicable."

This warning is given by the Road Haulage Disposal Board in their first report to the Minister of Transport. It covers the six months ended November 28, and reveals that the vehicles, land, premises, plant, equipment and stores of British Road Services have a book value of £45.6m. Vehicles account for less than half this sum (£21.9m.).

The Board say that it would be wrong to think that the disposal of British Road Services is a fairly simple matter, capable of extremely quick solution. 'I he undertaking is not merely a collection of vehicles and trailers, but is a large integrated business ordered to be sold at the best aggregate price. Land and premises stand in the Commission's books at £14.8m. and plant, equipniint and stores at £8.9m.

It is pointed out that the Transport Act. 1953, gives the Board no powers or duties to stimulate or accelerate disposal Nevertheless, the Act leaves no doubt of the importance of the time factor. The Board emphasize that the later in 1954 that any purchase takes place, the less becomes the advantage to the buyer of being able to exceed a radius of 25 miles.

Minister's Estimate • Moreover, the Minister has to make a provisional estimate not later than September 30, 1954, of the amount to be covered by the levy, the first instalment of which is payable to the Commission on January 1, 1955. Interest on the amount payable is, however, to run from July 1, 1954.

"These dates," the Board point out, "would appear to assume that disposals would be sufficiently far advanced by September 30, 1954, to enable an approximate estimate of the total statutory payment to he calculated; and also that it would be fair to make interest payments run in favour of the Commission from the second half of 1954."

Difficulties of gauging the market are explained and tribute is -paid to the Road Haulage Association for their survey of the requirements at' hauliers.

" We think that the broad pattern of these replies gave the best early guidance to the various sizes of the smaller units desired," the Board say, :``and some guidance to the total number of vehicles likely to be wanted, but the test of the market provided by the first offers—of units for sale must determine what further offers on a similar basis should be made."

The Board's appeal (The Commercial Motor, November 20) for information from operators on the likely demand for the larger and more specialized groups of vehicles and property has met with a useful response.

The Commission have assured the Board that, where premises no longer operationally active are included in a unit, they will be suitable for inclusion, having regard to the composition of the unit as a whole. They will also take care that where vehicles are assigned to " inactive " premises from another depot, they will be drawn from a depot Which serves much the same area.

As far as possible, the ages of vehicles in units for sale will be averaged.

The report reveals that the Minister has agreed to consent to the tonnages proposed to be retained by the Commission, subject to a reasonable distribution of the vehicles throughout the country. The Commission are to keep 3,559 vehicles (13,910 tons) made up of 156 abnormal indivisible load carriers, 972 other special types and 2,431 other vehicles (general haulage units). The table gives further details.

There has been a number of informal discussions between the Commission and the Board on disposal by the sale of shares of companies, but no decisions have yet been made.

The Minister has agreed to the Commission's selling, otherwise than aS part of transport units, stores valued at some £4.75m. The Board have agreed with the Commission's view that to include stores in transport units would have been administratively difficult and have made for considerable delay.

The Board ask for the Minister's help in explaining their true functions. "It might be natural," the report says, "to assume that the duty of a Road Haulage Disposal Board was to dispose of road haulage vehicles and other road haulage property. Parliament has not given the Board this duty. But there is no doubt that a widespread belief exists that the Board is responsible for the actual disposal of the road haulage undertaking of the Commission."

The report is obtainable from the Stationery Office at 6d.


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