NFC 'errors' over French connection
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'RITICISM of the managelent of the National Freight orporation's abortive French Tterprise came from NFC 'airman Sir Dan Pettit last eek in evidence to a House of ommons select committee.
Sir Dan told the committee Lvestigating nationalised dustries, "Our timing was rong for France. We had the !st road tanker fleet outside e oil companies, but we were t by the French recession.
"Delegation of management France was not appropriate, e should have maintained oser control over the opera)n," said Sir Dan.
"Overseas, we are still makg money, but there were Tors of judgement in man;ement and we did not want risk the rejuvenation of the K businesses," he said.
Following Sir Dan's corn ments, committee chairman Russell Kerr commented: "I don't think we should rake over all that issue again," but he gave no direction on publication of the evidence.
The closure of the NFC's French businesses is now the subject of a legal case. An NFC spokesman later commented "the case involves two groups of comapnies bought by the NFC.
"It involves misrepresentation by the French vendors of the businesses — but the whole matter is really subjudice," he said.
Also giving evidence, NFC financial director and comptroller Peter McGrath said: "The Corporation made no secret of its determination to be commercial and we thought it appropriate to withdraw."
Sir Dan blamed the end of the French enterprise on the Continental recession. "French oil consumption went down by 30 per cent and we were hit by crises in NCL and Freightliners — but we still have a foothold in France," he said.
During the hearing, Sir Dan confirmed CM predictions on NFC profits. The corporation made a trading profit of £3.9million compared with last year's figure of a loss of £9.4million.
But the overall loss for 1976 is still £15million when interest payments and pension liabilities are taken into account — less than half the 1975 figure of a £31million loss.
Answering questions from Tory MP John Cockroft, he said the figures indicated the level of the burden of pensions taken on by the NFC when they acquired Freightliners and National Carriers from the railways.
Answering Mr Kerr's questions on tachographs, Sir Dan said the NFC was not averse to the development of the tacho situation and EEC rules, but the profits from any restraints will be negligible he said.
NFC chief secretary and legal adviser Phillip Mayo told Mr Kerr that the Corporation was ready to implement government regulations as far as drivers' hours were concerned, but he said there would be no substantial transfer of freight from road to rail as a result.
"We are in a better position than most to offer services, if the regulations are to be introduced. Freightliners stand ready to take over traffic or to co-operate in arrangements to do the trunk work, while others do the distribution work," said Mr Mayo.
Sir Dan said that he would stand on the NFC track record when asked about transferring Freightliners back to the railways. "It has taken five or six years to turn it into an effective marketing business," he said.
"The future of Freightliners is the litmus test on whether or not the Government wants this business to succeed," said Sir Dan.