Exchequer Finances Rail Rate-cutting
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RAILWAY rate-cutting, made possible by grants from the Exchequer to write off annual losses, was attacked on Wednesday by Mr. R. B. Brittain, Eastern Area chairman of the Road Haulage Association, at Great Yarmouth Subarea's dinner at Lowestoft.
"It is evidently their determination to get traffic at any cost," he said, " and in the general way we could not grumble too much about this, provided the cost is borne by the railways themselves. But if the railways can always find a generous Chancellor to meet their enormous losses, we have every right to object that they are using public money in order to cut their prices.. "Our members in Lowestoft and Yarmouth have been particularly affected by what I can only describe as completely irresponsible rate-slashing on the part of British Railways, For example, their tonnage rate for frozen food and fish from this part of the country to London has been cut by nearly half since 1955. The railways did not make a profit in 1956, 1957 or 1958. How can they hope to do so in 1959, when they practically halve their charges?"
Mr. E. C. Turner, sub-area chairman, said hauliers were confident that, whatever changes the railways made in their rates, they could never hope to compete on service with road transport. The railway system was bound to be complicated and rigid, whatever progress was made with modernization.