Ulm grant for NFC
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THE National Freight Corporation is to be given grants of E8m over the next few months, Transport Minister Dr John Gilbert announced in the Commons last week.
The news comes only days after the NFC announeed that it is expecting a record loss of £30m for 1975.
A spokesman for NFC pointed out that when the two biggest loss-incurring areas of their operation were inherited from British Rail—National Carriers and Freightliners—it came with a built-in subsidy of £60m.
"Of this we only drew E421m because they did so well in pulling themselves up by the bootlaces," said the spokesman.
He said that studies were being done to see where money could be saved on the rail-linked systems. "Throughout the recession of 1974 NFC had been constantly reappraising its strategy. The labour force has been trimmed and productivity gains realised," he said.
News of the NFC's massive losses came shortly after it had been revealed that BRS, Tankfreight, Pickfords Travel, Pickfords Removals and most of the Corporation's other companies were showing a profit—BRS showing a record profit.
In his last annual report NFC chairman, Sir Dan Pettit said that about three-quarters of the 1974 losses had been due to National Carriers while Freightliners had been •hard hit by the recession.
Dr Gilbert told the House that the measure of a grant was a purely temporary one while the Corporation sorted out ways to cut the deficit.