THC Plans Heavy Capital Spending Over Next Four Years
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FROM OUR POLITICAL CORRESPONDENT
l‘AR. GEORGE BROWN'S National Plan reveals that fixed investment by the 'VI Transport Holding Company is proposed to rise sharply this year and maintain a comparatively high level before falling off again in 1969-70.
But this rising curve between 1965-68 gives no clue about possible amounts to be spent on acquiring road haulage and other companies from the private sector.
On the advice of the Government, the figures relate only to existing business and its probable development. The curve indicated in the figures below is—among other things—a reflection of current policy to replace road goods vehicles to take account of new Construction and Use Regulations and so on, and to shorten the life of vehicles in the fleet
Once the replacement boom is over, investment is expected to settle down again at a level which will reflect shorter vehicle life and the steady expansion of road haulage in general. Proposed fixed investment by THe in int. at 1964 prices 1964 1965 1966 1967 1968 1969 1970
14 20 22 20 21 19 17 To the extent explained above, the investment figures revealed by the national plan are not a comprehensive pointer to future TI-IC policy. But it is claimed they were enough for the National Plan, since the relative figures for any acquisitions which might be made would have been included in the global figures for private enterprise.
This year's brisk succession of purchases by the State sector of transport has highlighted a largely unspoken aspect of Government policy which no one at the moment seems inclined to develop upon.
The effect of future changes in Government policy on transport is among the issues deliberately shelved by the National Plan. But I understand that the Transport Holding Company will, for the time being, continue to attempt to acquire undertakings which represent a good investment and an adequate return on capital.