L.N.E.R, ADVOCATES PARTIAL STATE TAKE-OVER
Page 27
If you've noticed an error in this article please click here to report it so we can fix it.
AS an alternative to complete nationalization and as a supplement to the memorandum, "British Railways and the Future," the L.N.E.R. has put forward a scheme for consideration by the Minister of Transport, involving the purchase by the Government of the used assets, including track and signalling apparatus, necessary for the operation of railway traffic. The chief aims of this plan are to raise new capital for railway-modernization schemes and to equalize the disparity in track costs between road and rail transport.
Payment for the railways' fixed assets would be made in Government stock redeemable by the Government at a suitable date. On completion of payment, the Government would grant each railway company those assets formerly belonging to it, at a rental, and the companies would maintain and operate the railways for the period of the leases.
It would be necessary to calculate the rent paid to the State by the railways. as lessees of the tracks, in such a way as to secure that the railway companies were placed on an equal basis with road transport as regards track costs. The railways would reduce their rates, fares and charges, and bring them into line with road-transport charges, and the adoption of a common rates structure .would be expedited.
Whether or not track costs between road and rail be equalized, the L.N.E.R. will honour the road-rail co-ordination agreement.
The other three main-line railway companies have not approved this plan.