THE GOVERNMENT APPROVES
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FROM OUR POLITICAL CORRESPONDENT
THE Tayforth and Leyland deals (as detailed on pages 20-21) have the full approval of the Cabinet, because it follows the policy, laid down before the General Election, of allowing the Stateowned sector to spread its wings and expand.
Mr. Wilson himself announced that he wanted to "lift the lid" off State road transport, and this has been reinforced by statements made by Mr. Tom Fraser since taking office . as Minister of Transport.
While these deals may be the opening shots in a sustained campaign to buy the State into successful private enterprise, it is being emphasized at Westminster that the Cabinet has not yet made a formal decision on the part that such activity will play in the co-ordination scheme. There is Cabinet activity on this front, but the Government is not expected to show its hand on the overall theme just yet.
The Tayforth deal in particular has one significant element, however: it came a matter of hours before a statement declaring a slow-down in Government expenditure.
It therefore emphasized the belief that moves to secure bigger profits for the THC, and to strengthen its position apropos private haulage, would meet with Treasury approval in spite of what might happen elsewhere in the public sector.