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/ T H I S D O C U M E N T IS T H E P R O P E R T Y OF H I S BRITANNIC M A J E S T Y ' S G O V E R N M E N T
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259
Printed for the Cabinet. A pril 1946.
S E C R E T .
CP.
(46)
Copy N o .
149.
10th April, 1946.
CABINET.
NATIONALISATION
MEMORANDUM
BY
OF
TRANSPORT.
THE M I N I S T E R
OF
TRANSPORT.
M Y p a p e r S.I. (M) (46) 4 of t h e 23rd F e b r u a r y h a s recently been discussed
by the S o c i a l i s a t i o n of I n d u s t r y Committee a n d i t s proposals have been g e n e r a l l y
a p p r o v e d by them, subject to some s u g g e s t i o n s w h i c h I have embodied in t h e
present paper.
2. I deal a t more l e n g t h in p a r a g r a p h s 3 - 1 8 below w i t h the case of road
t r a n s p o r t ; the other p r o p o s a l s in S I . (M) (46) 4 are briefly as f o l l o w s :—
(a) T h e r e w i l l be a B r i t i s h T r a n s p o r t C o m m i s s i o n (B.T.C.) c o n s i s t i n g of a
c h a i r m a n a n d f o u r other members, t o w h i c h there w i l l be transferred
compulsorily by t h e terms of t h e B i l l all the r a i l w a y s a n d c a n a l s w h i c h
are n o w u n d e r control. P o w e r w i l l be t a k e n to acquire by a g r e e m e n t
any minor r a i l w a y or canal u n d e r t a k i n g not covered by the present
control.
(b) T h e u n d e r t a k i n g s of the r a i l w a y c o m p a n i e s w i l l be taken over as a whole,.
i n c l u d i n g all t h e i r a n c i l l a r y businesses a n d investments ( w h i c h cover­
about 25 p e r cent, of the country's dock system, s t e a m s h i p s , hotels, & c ,
a n d i m p o r t a n t i n t e r e s t s in road transport, both p a s s e n g e r a n d goods).
(c) P o w e r w o u l d be t a k e n to enable B . T . C . to acquire p r i v a t e l y
railway wagons.
owned
(d) B . T . C . w o u l d be enable t o license the n o n - s t a t u t o r y canal c a r r y i n g com­
p a n i e s , to acquire such businesses by a g r e e m e n t and themselves to
carry if t h e y s a w fit.
(e) B . T . C . w i l l be g i v e n p o w e r s to acquire l o n g - d i s t a n c e road h a u l a g e services
a n d l o n g - d i s t a n c e road p a s s e n g e r services.
(/) T h e r e w i l l be e n a b l i n g powers to reorganise in regional g r o u p s local road
p a s s e n g e r services and to t r a n s f e r a d d i t i o n a l u n d e r t a k i n g s , i n c l u d i n g
m u n i c i p a l u n d e r t a k i n g s , subject to confirmation by P a r l i a m e n t , to
B . T . C . w h e r e t h a t course is necessary in order to achieve adequate
co-ordination.
(g) S i m i l a r p o w e r s w i l l be taken i n respect of t h e docks not o w n e d by the
railway companies.
(h) B . T . C . w o u l d have the general d u t y of p r o m o t i n g and securing the
p r o v i s i o n of an a d e q u a t e and p r o p e r l y co-ordinated system of transport
a n d of so fixing fares and c h a r g e s as to secure that revenues w o u l d
suffice to d e f r a y the e x p e n s e s of the w h o l e system, t a k i n g one year w i t h
a n o t h e r ; B . T . C . w i l l be subject to directions of a general character
issued to them by the M i n i s t e r .
(i) W h i l e all t r a n s p o r t assets will vest in B . T . C . , m a n a g e m e n t a n d operation
w i l l be d e l e g a t e d to three E x e c u t i v e s for R a i l w a y s , R o a d Transport
a n d D o c k s and I n l a n d W a t e r w a y s . P o w e r w i l l be taken to create
a d d i t i o n a l Executives- if that course is f o u n d by e x p e r i e n c e to be
desirable and it w i l l be possible to set u p an a p p r o p r i a t e separate
o r g a n i s a t i o n u n d e r B . T . C . to a d m i n i s t e r a n d develop hotel a n d catering­
f a c i l i t i e s . Staff w i l l be interchangeable between the E x e c u t i v e s .
[31631] B
0 0
A s e x p l a i n e d i n p a r a g r a p h 5 of S.I. (M) (4.6) 4, it is necessary t o
a d o p t a t the o u t s e t a scheme of o r g a n i s a t i o n based on the present
f u n c t i o n a l s t r u c t u r e of the different branches of t r a n s p o r t . B u t I
a g r e e w i t h the S o c i a l i s a t i o n of I n d u s t r y C o m m i t t e e t h a t scope m u s t
be l e f t for u l t i m a t e c o m b i n a t i o n of all t r a n s p o r t a c t i v i t i e s under
r e g i o n a l boards, w o r k i n g u n d e r t h e central d i r e c t i o n of B . T . C . , if
e x p e r i e n c e i n d i c a t e s that, w h e n a c q u i s i t i o n and other i n i t i a l processes
are complete, s u c h an a l t e r a t i o n i n lay-out is likely to secure
advantages.
(j)
T h e L . P . T . B . w i l l , i n future, be a p p o i n t e d by the M i n i s t e r .
(k) I have settled w i t h the Chancellor of the E x c h e q u e r a general basis for
a c q u i s i t i o n i n the special case of the r a i l w a y s . I shall shortly submit
to t h e S.I. C o m m i t t e e a p p r o p r i a t e terms for other t r a n s p o r t u n d e r ­
t a k i n g s , w i t h t h e necessary p r o v i s i o n s for a r b i t r a t i o n i n cases of
dispute.
(I) On r a t e s , c h a r g e s a n d f a c i l i t i e s , the e x i s t i n g a r r a n g e m e n t s w i l l c o n t i n u e
w i t h m i n o r modifications d u r i n g t h e period w h i c h B . T . C . w i l l require
t o consider the p r i n c i p l e s w h i c h s h o u l d g o v e r n s u c h m a t t e r s .
The
p r i n c i p l e s so f o r m u l a t e d s h o u l d be referred to an a p p r o p r i a t e
A d v i s o r y C o m m i t t e e . I f t h e M i n i s t e r i s satisfied, he s h o u l d then
o b t a i n the a p p r o v a l of P a r l i a m e n t to t h e i r a d o p t i o n . A T r a n s p o r t
T r i b u n a l w i l l be c h a r g e d w i t h t h e d u t y of s e t t l i n g the details.
Until
the m a i n n e t w o r k of our i n l a n d t r a n s p o r t services h a v e been brought
u n d e r common o w n e r s h i p , i t w o u l d be p r e m a t u r e to a t t e m p t t o g i v e
f o r m to the p r i n c i p l e s w h i c h m u s t govern r a t e s a n d c h a r g e s i n a unfied
t r a n s p o r t s y s t e m . T h e n e w p r i n c i p l e s m u s t t a k e a s u b s t a n t i a l t i m e to
w o r k out a n d i t i s i n v i e w of t h e i r i m p o r t a n c e to the t r a d i n g c o m m u n i t y
t h a t I s u g g e s t t h a t P a r l i a m e n t s h o u l d h a v e a n o p p o r t u n i t y to a p p r o v e
them.
(m) C o a s t w i s e s h i p p i n g w i l l not be n a t i o n a l i s e d .
A formal arrangement
for close a n d c o n t i n u o u s c o n s u l t a t i o n w i t h the Chamber of S h i p p i n g
w o u l d be l a i d d o w n w i t h a v i e w to e n s u r i n g t h a t efficient c o a s t w i s e
s h i p p i n g services are m a i n t a i n e d to the e x t e n t declared from t i m e
t o t i m e by t h e M i n i s t e r to be r e q u i r e d i n the n a t i o n a l interest.
This
w i l l involve a t l e a s t a v o i d a n c e of the q u o t a t i o n of u n d u l y c o m p e t i t i v e
e x c e p t i o n a l r a t e s by the r a i l or road u n d e r t a k i n g s of B . T . C . and
a r r a n g e m e n t s for combined l a n d a n d sea f r e i g h t s a n d f a c i l i t i e s , a n d
m a y require other s a f e g u a r d s .
*
(u) I n v i e w of t h e p r e c e d e n t s r e l a t i n g to s t a t u t o r y t r a n s p o r t a n d other
u n d e r t a k i n g s , it wall be n e c e s s a r y to make p r o v i s i o n for compensa­
t i o n of staff w h o are d i s p l a c e d a s a result of t r a n s f e r , or whose
c o n d i t i o n s of service a r e w o r s e n e d , a n d also to preserve the super ­
a n n u a t i o n r i g h t s of e x i s t i n g employees.
T h e f o r m of these clauses
w i l l d e p e n d to some e x t e n t u p o n the general decision to be reached
i n t h i s m a t t e r , but I r e g a r d it as e s s e n t i a l to r e t a i n the loyal service
a n d g o o d w i l l of the staff t a k e n over from e x i s t i n g u n d e r t a k i n g s .
P r o v i s i o n w i l l also have to be m a d e for a s u i t a b l e conciliation
m a c h i n e r y , a n d I agree w i t h the M i n i s t e r of L a b o u r and N a t i o n a l
Service t h a t t h i s m a o h i n e i w should be r e g a r d e d as part of the e q u i p ­
m e n t of the i n d u s t r y i t s e l f a n d not be d i r e c t l y l i n k e d w i t h the
Government.
(o) P r o v i s i o n w o u l d be made for a series of A d v i s o r y C o m m i t t e e s in the
r e g i o n s and a t H e a d q u a r t e i - s to keep before B . T . C . the needs of users
of the t r a n s p o r t system for g o o d seiwice a n d d e v e l o p m e n t . .
Road Haulage. 3. T h i s r e p r e s e n t s t h e most difficult a s p e c t of our policy. I t m a y assist
t h e C a b i n e t ' s c o n s i d e r a t i o n of the m a t t e r if I describe briefly the general
s t r u c t u r e of the i n d u s t r y .
4. T h e r e a r e a p p r o x i m a t e l y h a l f a m i l l i o n motor vehicles d e s i g n e d for t h e
c a r r i a g e of goods.
5. Of these, 3 5 0 , 0 0 0 are o p e r a t e d u n d e r C. licences, i.e., n s e d by t h e i r
o w n e r s for the c a r r i a g e of their OAVII goods, a n d are not subject to any l i m i t a t i o n
of d i s t a n c e u n d e r t h e Traffic A c t s , t h o u g h t e m p o r a r i l y t h e y are l i m i t e d to
60 miles. A b o u t 7 5 per cent, o f these vehicles are e n g a g e d in w h o l e s a l e or retail
d i s t r i b u t i o n a n d a r e seldom used o u t s i d e a r a d i u s of 4 0 m i l e s from their b a s e —
a d i s t a n c e w h i c h enables t h e vehicles to make t h e r e t u r n journey, w i t h stops
for d i s t r i b u t i o n , w i t h i n a w o r k i n g d a y . T h e r e m a i n i n g 2 5 per cent, are m a i n l y
o p e r a t e d by t h e l a r g e r w h o l e s a l e d i s t r i b u t o r s a n d by i n d u s t r i a l i s t s w i t h p l a n t s
u p a n d d o w n t h e country w h o use t h e vehicles a s a p r i v a t e t r a n s p o r t system.
I n a small but g r o w i n g number o f cases, the vehicles a r e a n a l o g o u s to a conveyor­
belt.
6. E x c l u s i v e of 10,000 vehicles o w n e d by t h e R a i l w a y C o m p a n i e s , there
are 140,000 v e h i c l e s o p e r a t e d by 60,000 o w n e r s u n d e r A . a n d B . licences to carry
g o o d s of others for hire or r e w a r d . T h e A . licence-holders, of w h o m there are
a b o u t 30,000, are r e s t r i c t e d to p u b l i c h a u l a g e , a n d t h e a v e r a g e number of
v e h i c l e s o w n e d per licence i s three. T h e 35,000 B . licence-holders c a n both carry
t h e i r o w n g o o d s a n d , subject t o c o n d i t i o n s , e n g a g e i n public h a u l a g e ; in this
class, t h e a v e r a g e number of vehicles o w n e d per licence i s about one a n d a half.
U n f o r t u n a t e l y , in respect of d i s t a n c e s run, there is n o clear-cut d i s t i n c t i o n
b e t w e e n A . a n d B . licence-holders a n d m a n y of t h e latter, on occasions, operate
over s u b s t a n t i a l d i s t a n c e s ; some o w n e r s operate u n d e r both t y p e s of licence.
7. T h e small w o r k i n g operators have l i t t l e in the w a y of overhead e x p e n s e s
a n d depend, t o a l a r g e e x t e n t , on their local a n d p e r s o n a l contacts. P e r h a p s about
o n e h a l f of t h e 1 5 0 , 0 0 0 vehicles ( i n c l u d i n g the 10,000 of the r a i l w a y s ) are not
r e g u l a r l y u s e d o u t s i d e a r a d i u s o f 20 miles from t h e i r base. A t the other extreme
are probably 2 0 , 0 0 0 vehicles o w n e d by between t w o a n d three thousand operators,
w i t h o r g a n i s a t i o n s of v a r y i n g size, w h i c h are more or less r e g u l a r l y used for h a u l s
of 60 m i l e s a n d u p w a r d s .
T h e remaining vehicles are used in intervening
d i s t a n c e s , b u t both the short a n d t h e l o n g - d i s t a n c e v e h i c l e s a r e frequently used
for v a r y i n g p u r p o s e s a n d a n y close a n a l y s i s of their e m p l o y m e n t is impracticable.
8 . A n a t i o n a l transport s y s t e m w i l l largely d e p e n d for i t s success o n the
scope of its m o n o p o l y b e i n g w i d e e n o u g h to e n s u r e t h a t i t obtains a volume of
traffic sufficient (a) t o cover i t s overhead c o s t s ; a n d (b) t o enable i t to operate
a t reasonable r a t e s a n d w i t h economic l o a d i n g s . On t h e other h a n d , t h e road
v e h i c l e a n d i t s driver or crew o f t e n perform a w i d e v a r i e t y of services over a n d
above the s t r i c t c a r r i a g e of goods wdiich a n a t i o n - w i d e monopoly m i g h t find i t
difficult to offer.
9. A g a i n s t t h i s background, I h a v e h a d to consider h o w best t o g i v e effect t o
o u r declared p o l i c y o f b r i n g i n g l o n g - d i s t a n c e road h a u l a g e services under n a t i o n a l
o w n e r s h i p — w i t h t h e i m p l i c a t i o n that some s u i t a b l e field o f o p e r a t i o n should still
be l e f t t o the i n d e p e n d e n t h a u l i e r . I c a n derive some a s s i s t a n c e from t h e scheme
of control over the c a r r i a g e of g o o d s by road, w h i c h w as e x e r c i s e d before t h e w a r
by the Traffic C o m m i s s i o n e r s as the L i c e n s i n g A u t h o r i t i e s for goods vehicles, a n d
i s a b o u t to be revived.
r
10. I n t h e first place, it is, I think, clear t h a t t h e C. licensee c a r r y i n g h i s
u w n bonafidegoods, should be free to operate h i s o w n vehicles for t h i s p u r p o s e
w i t h i n a r a d i u s of 4 0 m i l e s from h i s specified base, a n d t h i s freedom must, in m y
v i e w , e x t e n d , n o t only to w h o l e s a l e or retail traders, b u t to i n d u s t r i a l i s t s . T h e
r i g h t t o carry h i s o w n g o o d s i n h i s o w n vehicles is t h e best a n s w e r to any trader
w h o c o m p l a i n s t h a t h e is b e i n g subjected t o a n o p p r e s s i v e monopoly. A t the
s a m e t i m e , w e c a n n o t afford to s e e a d r i f t of traffic a w a y f r o m the public h a u l a g e
S3'stem t o vehicles r u n n i n g under C. licences over d i s t a n c e s for w h i c h the n a t i o n a l
s y s t e m can a n d should provide a good a n d economical service. I propose, there­
fore, t h a t t h e C. licensee should require special a u t h o r i t y from the L i c e n s i n g
A u t h o r i t y i f h e desires to run f u r t h e r t h a n 4 0 m i l e s f r o m h i s base, a n d t h a t the
o n u s s h o u l d rest u p o n h i m to s a t i s f y t h a t A u t h o r i t y t h a t h i s business requires
such g r e a t e r l a t i t u d e for special reasons. T h i s l a t i t u d e w o u l d , of course, not
h a v e t o be s o u g h t load by load, but w o u l d n o r m a l l y be governed by suitable
c o n d i t i o n s a t t a c h e d to t h e licence. B . T . C . w o u l d have a r i g h t to be heard in
o p p o s i t i o n t o a p p l i c a t i o n s for such l a t i t u d e . I t w i l l be proper to take p o w e r s
t o ensure t h a t C. licences are available only to bona fide carriers of their o w n
goods, a n d t h a t abuses such a s those w h i c h gave rise t o difficulty i n N o r t h e r n
I r e l a n d should be stopped.
I n the A p p e n d i x w i l l be f o u n d t h e general o u t l i n e of t h e clause T have
i n m i n d for r e g u l a t i n g the g r a n t of special C. licences.
[31631]
B 2
1 1 . A s r e g a r d s the A . a n d B . licence-holders, the o u t l i n e of m y p r e v i o u s
p r o p o s a l s i s s t a t e d shortly below :—
(a) B . T . C . w o u l d a c q u i r e those u n d e r t a k i n g s o p e r a t i n g w h o l l y or m a i n l y
o n h a u l s of 4 0 m i l e s a n d u p w a r d s ; these u n d e r t a k i n g s w o u l d f o r m
the n u c l e u s of the n e w o r g a n i s a t i o n a n d t h e basis of B.T.C.'s monopoly,
since n o o p e r a t i o n beyond a p o i n t to p o i n t d i s t a n c e of 4 0 m i l e s could
be u n d e r t a k e n e x c e p t u n d e r their a u t h o r i s a t i o n .
(&) P e r s o n s c a r r y i n g for h i r e or r e w a r d for shorter d i s t a n c e s w o u l d be
subject, as a t present, to l i c e n s i n g control by the A r e a L i c e n s i n g
Authorities.
E v e r y operator w o u l d , by v i r t u e of h i s licence, be
a l l o w e d f r e e d o m of o p e r a t i o n ( w i t h o u t risk of objection by B . T . C . )
w i t h i n a r a d i u s of 10 m i l e s from a specified base.
Outside that
r a d i u s the L i c e n s i n g A u t h o r i t y w o u l d , a f t e r h e a r i n g a n y r e p r e s e n t a ­
t i o n s from B . T . C . , h a v e d i s c r e t i o n to g r a n t the i n d e p e n d e n t h a u l i e r
a licence a u t h o r i s i n g h i m to u n d e r t a k e h a u l s u p to 2 0 m i l e s p o i n t
to point, a n d these h a u l s m i g h t be u n d e r t a k e n o u t s i d e the 10 m i l e s
r a d i u s , but l i m i t e d to any a r e a s or r o u t e s or traffics specified i n the
licence. For h a u l s of more t h a n 2 0 m i l e s p o i n t to p o i n t o u t s i d e t h e
10 m i l e s r a d i u s , the consent of B . T . C . w o u l d be necessary, but a n y
e x i s t i n g o p e r a t o r w h o w a s r e f u s e d such a consent, or h a d c o n d i t i o n s
a t t a c h e d t o t h a t consent w h i c h h e r e g a r d e d a s unreasonable, w o u l d
have a r i g h t t o require B . T . C . to t a k e over t h a t p a r t of h i s b u s i n e s s
w h i c h h e w a s forced to discontinue, on terms w h i c h w o u l d be l a i d
down in the Bill.
I n such c i r c u m s t a n c e s , B . T . C . should h a v e the
o p t i o n of t a k i n g over t h e w h o l e of t h e business.
(c) B . T . C . w o u l d h a v e an u n r e s t r i c t e d r i g h t t o o p e r a t e vehicles over a n y
distance, but w o u l d be d i s c o u r a g e d by a g e n e r a l d i r e c t i o n from the
M i n i s t e r , f r o m u n d e r t a k i n g short h a u l s of less t h a n 10 m i l e s e x c e p t
i n so f a r a s the goods w e r e for collection or d e l i v e r y before or a f t e r
c o n v e y a n c e by other road, rail or c a n a l services of B . T . C . . or i n
c o n t i n u a t i o n of a business w h i c h B . T . C . h a d a c q u i r e d .
(d) B y c o m b i n a t i o n of the monopoly a n d the control by licence described
above, it s h o u l d be p r a c t i c a b l e t o secure a sufficient v o l u m e of l o n g
a n d m e d i u m d i s t a n c e traffic for B . T . C . B y e n a b l i n g them to " d o v e ­
t a i l " their services w i t h t h e shorter d i s t a n c e services of the i n d e p e n ­
d e n t h a u l i e r s , the scheme should also secure a l a r g e m e a s u r e of co­
o r d i n a t i o n b e t w e e n public a n d p r i v a t e h a u l a g e , w h i l e l e a v i n g the
l a t t e r room in w h i c h to live.
12. T h e scheme o u t l i n e d i n p a r a g r a p h 11 h a s been devised to accord, so
f a r as possible, w i t h e x i s t i n g o p e r a t i o n a l practice. I have, however, considered,
i n t h e l i g h t of the c r i t i c i s m s of some of my colleagues, w h e t h e r it could be modified
o n less r e s t r i c t i v e l i n e s . N o scheme w h i c h d e p e n d s u p o n d i s t a n c e s c a n a v o i d
g i v i n g rise to some degree of arbitrariness, a n d to t h e n e c e s s i t y for s e v e r i n g
e x i s t i n g businesses a n d the risk of h a r s h t r e a t m e n t of those h a u l i e r s w h o find
themselves f a c e d w i t h the a l t e r n a t i v e of r e s t r i c t i n g their a c t i v i t i e s or g o i n g
o u t of business.
13.
I t w o u l d , however, be possible to e l i m i n a t e the d i s t i n c t i o n b e t w e e n
h a u l s u p to 2 0 m i l e s a n d h a u l s between 2 0 a n d 4 0 m i l e s (in each c a s e p o i n t t o
point) w h i c h is the f e a t u r e of m y o r i g i n a l proposal, a n d to leave i n d e p e n d e n t
h a u l i e r s free to o p e r a t e on p o i n t t o p o i n t h a u l s n o t e x c e e d i n g 4 0 m i l e s i n l e n g t h ,
subject only to s e c u r i n g a licence f r o m the l i c e n s i n g a u t h o r i t y , a n d such condi­
t i o n s as t h a t a u t h o r i t y m i g h t impose. B . T . C . w o u l d , of course, be free t o c o m p e t e
for t h i s m e d i u m d i s t a n c e h a u l a g e a n d have a r i g h t t o object to the g r a n t of a
licence to others. T h e y w o u l d be d i s c o u r a g e d , a s I h a v e proposed, from u n d e r ­
t a k i n g short h a u l s o f less t h a n 1 0 m i l e s , a n d g e n e r a l l y e n c o u r a g e d to c o - o r d i n a t e
their services in t h e sphere of m e d i u m h a u l a g e w i t h t h e i n d e p e n d e n t h a u l i e r s .
14. I a m not i n f a v o u r of t h e s o l u t i o n j u s t mentioned w h i c h i s o p e n to the
objection t h a t B . T . C . , whale not i t s e l f r e q u i r i n g a licence, w o u l d be e x p o s e d t o
c o m p e t i t i o n for a l a r g e volume of traffic, t h e e x t e n t of this c o m p e t i t i o n
d e p e n d i n g u p o n t h e e x e r c i s e of t h e i r d i s c r e t i o n by the l i c e n s i n g a u t h o r i t y . F r o m
the o p p o s i t e p o i n t of v i e w , it m a y also be o b j e c t e d t h a t an adverse d e c i s i o n of
the L i c e n s i n g A u t h o r i t y , based on r e p r e s e n t a t i o n s by B . T . C . , m i g h t i n j u r i o u s l y
affect a h a u l i e r w i t h o u t g i v i n g h i m any r i g h t t o c o m p e n s a t i o n . U n d e r e x i s t i n g
c o n d i t i o n s , the h a u l i e r h a s no r i g h t t o a c o n t i n u a n c e of h i s licence, but all h i s
road c o m p e t i t o r s a r e in the same p o s i t i o n .
15. A g r e a t e r degree of simplification w o u l d be o b t a i n e d i f a n i n t e r ­
m e d i a t e zone were d i s p e n s e d w i t h , so t h a t t h e i n d e p e n d e n t h a u l i e r w o u l d be
free to o p e r a t e w i t h i n a specified r a d i u s of h i s base, a n d t o o p e r a t e beyond t h a t
r a d i u s only w i t h the consent of B . T . C . I n s u c h c o n d i t i o n s , a r a d i u s of 25 m i l e s
m i g h t be a p p r o p r i a t e . W i t h i n i t h a u l i e r s w o u l d be free to operate subject o n l y
to licence. I t w o u l d not be p r a c t i c a b l e to e x c l u d e B . T . C . from u n d e r t a k i n g h a u l s
up t o 2 5 miles, but they w o u l d be d i s c o u r a g e d f r o m c a t e r i n g for the shorter
h a u l s . B . T . C . would control all h a u l s beyond those p e r m i t t e d by the 2 5 - m i l e
r a d i u s i n each case, a n d w o u l d be free, e i t h e r to p e r m i t o p e r a t o r s to c o n t i n u e
subject t o c o n d i t i o n s , or to r e f u s e p e r m i s s i o n to operate beyond the r a d i u s .
If
B . T . C . refused p e r m i s s i o n t o operate beyond the r a d i u s , or i m p o s e d c o n d i t i o n s
w h i c h the operator considered to be u n a c c e p t a b l e , the latter would have the r i g h t
to r e q u i r e B . T . C . to t a k e over the p a r t of h i s business w h i c h h a d to be discon­
t i n u e d , a n d in t h a t case B . T . C . should h a v e the a l t e r n a t i v e of b u y i n g out the
w h o l e concern.
Road Passenger Transport. 16. I t is p r o p o s e d to c o n f e r p o w e r s on B . T . C . t o a c q u i r e l o n g - d i s t a n c e road
p a s s e n g e r services w h i c h are d i r e c t l y c o m p e t i t i v e w i t h the r a i l w a y s . I t w i l l also be
necessary to g i v e t h e m p o w e r to acquire other p a s s e n g e r t r a n s p o r t u n d e r t a k i n g s ,
i n c l u d i n g those n o w o w n e d by the m u n i c i p a l i t i e s , in so f a r as t h a t proves to be
the best m e a n s of s e c u r i n g an a d e q u a t e degree of c o - o r d i n a t i o n . B u t we may'
e n c o u n t e r s t r o n g o p p o s i t i o n f r o m m a n y of the m u n i c i p a l i t i e s ( n u m b e r i n g a b o u t
one h u n d r e d ) w h i c h a t p r e s e n t take a l i v e l y i n t e r e s t i n their o w n t r a n s p o r t u n d e r ­
t a k i n g s , a n d I t h e r e f o r e propose, as a p a r a l l e l procedure, t h a t B . T . C . s h o u l d
have the d u t y of c a l l i n g for the f o r m u l a t i o n of a co-ordinated scheme of p a s s e n g e r
t r a n s p o r t from local a u t h o r i t i e s a n d c o m p a n i e s i n selected areas of suitable size,
whereby j o i n t or d i s t r i c t boards could be formed to o p e r a t e the services.
These
schemes m i g h t , or m i g h t not, require t h e t r a n s f e r of the combined u n d e r t a k i n g
to B . T . C . , and, in v i e w of t h i s p o s s i b i l i t y , t h e schemes s h o u l d be s u b m i t t e d t o
tlhe M i n i s t e r for h i s a p p r o v a l , a n d t h e n for confirmation by P a r l i a m e n t u n d e r
the s p e c i a l P a r l i a m e n t a r y procedure.
17. B . T . C . w i l l h a v e a general r i g h t t o operate e x c u r s i o n s a n d tours a n d
also contract c a r r i a g e s .
T h e r e m a y well be valuable' o p p o r t u n i t i e s for B . T . C .
to develop f a c i l i t i e s for h o l i d a y s - a t - h o m e a n d to encourage t o u r i s t traffic f r o m
abroad, e s p e c i a l l y in c o n j u n c t i o n w i t h t h e i r steamer and rail a n d road services
a n d t h e i r o w n e r s h i p of hotels.
18. T h e L o n d o n P a s s e n g e r T r a n s p o r t B o a r d presents a s p e c i a l problem a n d
can probably best be t r e a t e d as a r e g i o n a l board under the general d i r e c t i o n of
B . T . C . , subject to the o v e r r i d i n g p o w e r s of t h e M i n i s t e r .
19. I need not elaborate my p r o p o s a l s in regard to docks or c o a s t w i s e
s h i p p i n g , or deal a t t h i s s t a g e w i t h the n u m e r o u s t r a n s i t i o n a l a n d m a c h i n e r y
clauses w h i c h w i l l be required. M y object w i l l not be to overburden t h e B i l l w i t h
unnecessary d e t a i l , but at the same t i m e to p r e s e n t as complete a n d t i d y a scheme
as i s possible. T h i s should avoid rather t h a n increase c r i t i c i s m .
20.
I f the B i l l i s t o be r e a d y e a r l y i n the a u t u m n , as i t should be, I shall
require the w h o l e - t i m e services of a D r a f t s m a n i m m e d i a t e l y a f t e r E a s t e r . I h o p e
that m y colleagues w i l l g i v e a u t h o r i t y for a D r a f t s m a n to be a s s i g n e d to me,
a n d also a u t h o r i s e me to d i s c u s s the general scheme for d e a l i n g w i t h the v a r i o u s
branches of t r a n s p o r t confidentially w i t h those sections of t h e i n d u s t r y w h i c h
a r e i n a p o s i t i o n t o n e g o t i a t e w i t h me.
A. B.
Ministry of Transport, W. 1, l6th'April, 1946. APPENDIX.
-
C.
T h e s e licences, to w h i c h
have a t t a c h e d i n peace-time,
for, or in connection w i t h , the
m i l e s from the base at w h i c h
LICENCES.
n o c o n d i t i o n s a p a r t from those r e l a t i n g to s a f e t y
w o u l d in f u t u r e authorise the c a r r i a g e of goods
holder's t r a d e or business u p to a r a d i u s of 4 0 road
they are n o r m a l l y kept, a n d to such further e x t e n t
a s m a y be a l l o w e d by v i r t u e of a n y s p e c i a l c o n d i t i o n s w h i c h the a p p l i c a n t is able
t o s h o w to be j u s t i f i e d by the p a r t i c u l a r character of h i s business.
I n d e c i d i n g w h e t h e r special c o n d i t i o n s are justified the L i c e n s i n g A u t h o r i t y
w i l l be d i r e c t e d t o h a v e r e g a r d t o ­
(i) T h e e x t e n t t o w h i c h i t i s necessary for the a p p l i c a n t to e m p l o y h i s o w n
vehicles for the p u r p o s e of c o n n e c t i n g t w o or more p l a n t s or d e p o t s of,
or a s s o c i a t e d w i t h , n i s t r a d e or business.
(ii) T h e effect o n the t r a d e or b u s i n e s s of the a p p l i c a n t , i n c l u d i n g the e x t e n t
t o w h i c h a d d i t i o n a l costs i n p a c k i n g , h a n d l i n g a n d b r e a k a g e s are
l i k e l y t o be incurred, if t h e s p e c i a l c o n d i t i o n s are not a t t a c h e d .
(iii) A l t e r n a t i v e a v a i l a b l e m e a n s of s u i t a b l e p u b l i c t r a n s p o r t .
(iv) A n y r e p r e s e n t a t i o n s m a d e by B . T . C . , p a r t i c u l a r l y as to the e x t e n t t o
w h i c h the a p p l i c a n t calls u p o n the C o m m i s s i o n t o carry a n y of h i s
traffic.
T h e C. licence w o u l d be s u b j e c t to revocation
if—
(i) T h e c o n d i t i o n s subject to w h i c h i t w a s issued h a v e not been c o m p l i e d
with.
(ii) T h e v e h i c l e s have n o t been o p e r a t e d in accordance w i t h the p u r p o s e s
disclosed i n t h e a p p l i c a t i o n .
(iii) T h e v e h i c l e s h a v e been u s e d for c a r r i a g e of g o o d s in p u r s u a n c e or
f u r t h e r a n c e of a t r a n s a c t i o n t h e p u r p o s e or effect of whidh, w h a t e v e r
m a y h a v e been its form, w a s to p r o v i d e i n substance for t h e use of
t h e v e h i c l e for the c a r r i a g e of goods for h i r e or r e w a r d .
Period of Licence. T h e a p p l i c a n t w o u l d not h a v e to j u s t i f y h i s licence every year. C. licences
w o u l d be v a l i d for three y e a r s (or, p e r h a p s i n the case of licences to w h i c h n o
s p e c i a l c o n d i t i o n s are a t t a c h e d , for five years).
Appeals against refusal of a C. licence to operate beyond 4 0 miles and aga
revocation.
I t i s p r o p o s e d t h a t the a p p l i c a n t should h a v e a r i g h t t o a p p e a l a g a i n s t a n y
r e f u s a l of a request for s p e c i a l c o n d i t i o n s t o the i n d e p e n d e n t T r a n s p o r t T r i b u n a l ,
w h i c h w i l l be r e q u i r e d for other p u r p o s e s o f the A c t . I n t h a t event B . T . C . s h o u l d
be g i v e n a r i g h t of a p p e a l a g a i n s t t h e g r a n t of c o n d i t i o n s t o w h i c h i t h a d objected..