Plans to scrap NFC's vast losses
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MR WILLIAM RODGERS, the Transport Minister, is planning moves to eliminate the National Freight Corporation's deficit.
He told MPs last week that these proposals would follow when he had completed his consideration of the Corporation's financial position. And he reminded them that legislation was to be introduced to provide specific statutory backing for grants paid to the NFC to enable it to meet its obligations.
Such a situation was unacceptable, said Mr Sainsbury, and placed a burden on the taxpayer. Management action to stop it had to be taken.
Mr Rodgers said that the Corporation's transactions last year had resulted in a deficit that was much greater than could be tolerated.
However, the current figures showed an improvement, although there was still room for more. He saw no reason why, in the long run, the Corporation should be in receipt of a subsidy.
Mr Ian Gow (Tory, Eastbourne) asked if the Corporation's loss this year would be greater or less than last year's £31 million, and Mr Rodgers said he was led to think that it would be substantially lower.
Mr Robin Cook (Labour, Edinburgh Central) noted that in every year up to 1974 the Corporation had made a profit on its trading account. He suggested legislation removing the expensive commitment to pensioners whom it had never employed.
'The Minister replied that he was willing to consider any: thing.