Govt to meet rail losses
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FACED with a £70m loss on its freight services, British Rail plans two price increases this year and investigations of operational efficiency, the Commons learned last week. And any losses which cannot be eliminated will be met by a Government grant.
Dr John Gilbert, the Transport Minister, blamed the estimated £70m deficit on the economic recession and inflation.
British Rail had taken shortterm measures to cut working expenses and to increase its freight charges, said Dr Gilbert. It would be applying to the Price Commission for a further increase in charges from October, The Board's annual report for 1974, published last week, showed a deficit overall of £157.8m but, as far as freight was concerned, the report pointed out the encouragement that had been felt from the• growth in privately owned wagons. These increased by nearly 8 per cent to 18,400.
For selected bulk traffic, over 50 new private sidings were opened mainly for roadstone, aggregates and iron and steel products.
BR is discussing the possibility of withdrawing 30,000 freight wagons and slashing freight train mileage by 10 per cent.