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BR sell-off is welcomed

3rd January 1992
Page 6
Page 6, 3rd January 1992 — BR sell-off is welcomed
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Which of the following most accurately describes the problem?

• The transport industry has welcomed the Government's decision to reveal its controversial plans to privatise British Rail.

The White Paper, which is due to be published later this month, will commit the Conservatives to selling off slices of BR after the next general election.

While the BR board is fighting a rearguard action to preserve the network intact, the Freight Transport Association says: "It's been a long time in coming. We are in favour of breaking up BR's monopoly on freight traffic and bringing in elements of choice. Introducing competition is the quickest way to improvements."

The Railfreight Users Group, representing 50 of the leading shippers and forwarders, says: "NVe are generally in favour of privatisation because of the commercial disciplines it would impose, and because there are frustrations with existing freight management.

"But we are worried about property sell-offs and about track access for freight, when passenger lines are sold off," it says. "The Government says it doesn't matter who owns the lines, but we don't agree; we'd like to see the track controlled and directed by the Government."

RUG fears that privatisation will be used as a substitute for public investment, and that the freight network will shrink significantly. Even train-load freight, which is a profitable operation, is cutting out marginal business, says RUG.

Li BR has won permission to lease 700 container wagons, worth £40m, for its Freightliner operations.

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