x ,
SECRET
C. (60) 185
7th D e c e m b e r ,
COPY
NO.
I960
CABINET
REORGANISATION O F THE NATIONALISED
UNDERTAKINGS
Note by the M i n i s t e r
of
TRANSPORT
Transport
I c i r c u l a t e f o r t h e a p p r o v a l of m y c o l l e a g u e s a r e v i s e d d r a f t W h i t e
P a p e r o n t h e r e o r g a n i s a t i o n of t h e n a t i o n a l i s e d t r a n s p o r t u n d e r t a k i n g s .
T h i s h a s b e e n p r e p a r e d by t h e P r i m e M i n i s t e r w i t h the a s s i s t a n c e of t h e
C h a n c e l l o r of t h e E x c h e q u e r a n d m y s e l f , o n t h e b a s i s of a d r a f t p r o d u c e d
by the D e p a r t m e n t s c o n c e r n e d following the d i s c u s s i o n in Cabinet on
1st D e c e m b e r ( C . C . ( 6 0 ) 6lst C o n c l u s i o n s , M i n u t e 3).
2.
It w i l l b e s e e n t h a t , a l t h o u g h t h e r e h a s b e e n a g o o d d e a l of
r e - w r i t i n g a n d t h e d r a f t i s n o w m o r e c l o s e l y a r g u e d , f e w p o i n t s of p r i n c i p l e
have arisen.
3.
I h o p e t h a t t h e C a b i n e t w i l l f e e l a b l e to g i v e f i n a l a p p r o v a l to t h e
d r a f t t h i s w e e k i n o r d e r to e n a b l e t h e W h i t e P a p e r to be p r i n t e d i n t i m e f o r
p u b l i c a t i o n o n T u e s d a y , 20fch D e c e m b e r , b e f o r e P a r l i a m e n t r i s e s .
E. M.
M i n i s t r y of T r a n s p o r t ,
7th D e c e m b e r ,
I960.
W.l.
J
-^Revised
7th
December,
1960)
SECRET
DRAFT
REORGANISATION
1 .
Her
p r o s p e c t s
forward
M a j e s t y ' s
of
the
t h e i r
f i n a n c i a l
have
n a t i o n a l i s e d
from
been
the
f o r
They
Railways
N a t i o n a l i s e d
Commission
from
the
and
the
The
t a k i n g s
p r o v i d i n g
good
be
There
d e f i c i t s
of
of
t h e
i s
the
a
ko
Sweeping
be
in
the
have
to
way
hood
f a c e
a
l a r g e
a g a i n .
i s
to
a l l .
on
of
now
working
a d v i c e
and
accounts
S e l e c t
the
the
they
B r i t i s h
have
Transport
the
Report
Committee
B r i t i s h
and
put
c o n c l u s i o n s ,
the
f u l l
Commons
on
on
Transport
Aim
i s
that
the
b a s e d
both
in
do
to
a
o r g a n i s a t i o n
to
long
Transport
and
n a t i o n a l i s e d
i n d u s t r y
jobs
and
in
part
Those
be
and
the
major
w i l l
The
e x t e n t
n e c e s s a r y ,
a
aim
£500M.
changes
from
when
carry
of
i n t o
v i e w s
p o s i t i o n
and
and
the
p u b l i c
those
who
work
way
to
Commission
are
t r a n s p o r t
c u r r e n t l y
g o .
at
the
and
g i v i n g
a
them.
accumulated
end
running
f i n a n c e ,
i n
The
under­
at
of
the
1960
w i l l
r a t e
of
year.
r e q u i r e d
changes
B r i t i s h
order
£1 0 0 M .
t o
t h e i r
v a l u a b l e
G o v e r n m e n t s
worthwhile
much
s t r u c t u r e ,
Group
of
the
s e r v i c e s
and
the
the
Unions.
soundly
e f f i c i e n t
l i v e l i h o o d
3.
be
G o v e r n m e n t s
s h a l l
House
Trade
The
2.
by
UNDERTAKINGS
undertakings'^
r e a c h i n g
taken
and
reviewed
f u t u r e
Advisory
a l s o
I n d u s t r i e s ,
having
t h e i r
a s s i s t e d
have
TRANSPORT
t r a n s p o r t
In
S p e c i a l
PAPER
NATIONALISED
Government,
p r o p o s a l s
Commission.
B r i t i s h
THE
r e o r g a n i s a t i o n .
Government
r e c e i v e d
OF
WHITE
he
p u b l i c
the
p r i c e s
c a p i t a l
of
the
a s s u r e d ,
w i l l
Effort
w i l l
nature
have
of
charged
the
f o r
in
u n t i l
these
have
to
to
and
be
the
prepared
as
w e l l
r a i l w a y s
t h e i r
i f
part
t o
p r o v i d e d ,
The
u n d e r t a k i n g s ,
p l a y
s a c r i f i c e s
s e r v i c e s
them.
r e o r g a n i s a t i o n
burden
working
needed.
t a x p a y e r
as
are
continue
paying
t h e i r
w i l l
f a c e
and
w i l l
to
t h e i r
l i v e l i ­
in
throughout
t h i s
document the e x p r e s s i o n
" n a t i o n a l i s e d
transport
u n d e r t a k i n g s "
e x c l u d e s
the S t a t u t o r y
A i r
C o r p o r a t i o n s .
increasing p r o d u c t i v i t y
deployed
the
so
as
to
Government
Report
would
last
be
and
secure
made
maximum
funds
spring,
enabling
they
a
The
heart
great
employ
of
half
a
enterprise
is
system
transport
growing
of
the
net-work
The
will
of
problems
long
way
something
the
for
of
paid
of
the
of
for
7.
some
The
how
£75M.
the
in
a
other
year.
users
the
be
modernisation,
methods,
but
of
a
must
not
element
in
our
be
f o r e ­
as
can
and
new
railways
in
adaptation
other
to
plight.
running
year.
or
This
modern
upon
the
-
quite
are
by
apart
whether
money
These
They
costs
is
charges,
railways,
prepared
pattern
system
their
interest
tne
size
of
nearly
A
transport
and
of
year.
long
the
They
upon
since
interest
from
the
borrowed
charges
now
*
for
are
each
as
are
investment
financial
purposes.
Broadly,
present
even
their
test
of
like
grave
undertakings
a
for
forms
£60M.
of
provided.
the
changes
demand.
covering
and
so
They
essential
competition
services
and
Guillebaud
industry.
an
£lOOIvi.
an
railways,
of
now
meeting
practical
far
our
order
the
remain
other
public
modernisation
total
is
short
problem
price
When
far-reaching
basic
represent
is
and
are
and
size
with
a
the
railways.
vital
right
countries,
railways
a
than
faced
The
and
the
more
have
ana
in
by
development
circumstances
is
people
techniques
6.
that
be
operation.
implement
clear
to
Problem
problem
million
£1600M. w h i c h
seen.
the
national
railway
i t
to
in
force
necessary.
The
5.
labour
efficiency
available
made
the
t h i s
to
pay
will,
railway
system.
be
more
only
made
of
organisation
lay-out,
and
as
for
other
economic
in
It
the
is
compact.
prices
end
settle
already
There
equipment
management
transport,
and
must
-2SECRET
the
the
clear
that
also
operating
structure.
.1.
*" t h e f i g u r e s i n t h i s p a r a g r a p h r e l a t e
alone;
t h e y make n o a l l o w a n c e f o r s u
p r e s e n t some £10M, a y e a r a f t e r m e e t
c h a r g e s , earned from the other a c t i v
Commission.
for
to
railways
rpluses,
at
ing
interest
i t i e s of
the
o
8.
The
the
Government
must
and
answers
be
t o
are
r a d i c a l
t h e s e
convinced
changes
the
s t a t u t o r y
- B r i t i s h
Transport
The
p r e s e n t
c o n s t i t u t e d
The
s i z e
tended
and
t o
o u t l o o k
as
While
t h e s e
have
r e f e r r e d
the
no
f i n a n c i a l
t h e r e
f a c t o r s
t o
d e s i r a b l e
11.
1
1
large
of
range
found
e s s e n t i a l
overnights
f i r s t
s t e p
f i n a n c i a l
but
there
c o n s t i t u t i o n
c o n t r o l l e d
by
the
of
b e e n
due
These
and
a
t h a t
v i r t u a l l y
have
them
t a s k .
u n d e r s t a n d a b l y
a f f e c t e d
i t s
a c t i v i t i e s .
some
shortcomings
have
been
p a r t i c u l a r l y
In
the
the
tendency
paragraph
at
run
undoubtedly
to
in
t o
as
i m p o s s i b l e
have
part
o t h e r s .
i s
d i v e r s e
Railways
and
Commission
in
over
what
i s
been
marked
out
so
i t s
has
a
CONCLUSIONS
Transport
B r i t i s h
c l e a r l y
been
MAIN
B r i t i s h
m a t t e r s .
between
There
1+17
of
s t r u c t u r a l
management,
d e f e c t s
apparent
c o n s i d e r a t i o n
f o r
has
t e c h n i c a l
a l s o
t h e i r
Report,
e c o n o m i c a l l y
r i g h t
and
of
and
been,
of
in
as
a
what
t h e s e
o p e r a t i n g
the
S e l e c t
"confusion
i s
s o c i a l l y
,
The
outmoded
be
u n d e r t a k i n g s
Commission
have
p r e v a i l
judging
the
commercial
point
an
undertaking
whole
above.
matters
Committee
so
the
doubt
and
not
o r g a n i s a t i o n ,
of
the
s i n g l e
there
to
of
d i f f i c u l t i e s
over
the
as
GOVERNMENT'S
are
preoccupy
10,
in
a
that
w i l l
Commission.
a c t i v i t i e s
e f f e c t i v e l y
in
framework
THE
9.
problems
commercial
s t a t u t o r y
c a p a b i l i t y
r e s t r i c t i o n s
of
the
and
r a i l w a y s
i s
o b l i g a t i o n s
on
c i r c u m s c r i b e d . b y
t h e i r
t r a d i n g
o p e r a t i o n s .
12,
the
Mounting
earning
burden
of
c a p a c i t y
i n t e r e s t
d e t r i m e n t a l
c o n t r o l ,
d e f i c i t s ,
and
to
to
the
as
of
the
the
of
a s s e t s
m o d e r n i s a t i o n
morale
hopes
s i z e
of
of
c a p i t a l
r e p r e s e n t e d ,
p r o c e e d s ,
management
r e c o v e r y .
- 3
f"" p
1
^"1 Tft p i ^ " ^
debt
­
and
in
and
r e l a t i o n
the
p r e s e n t
s t a f f ,
to
a
t o
i n c r e a s i n g
s i t u a t i o n
f i n a n c i a l
IIP
13.
In
these
(a)
to
circumstances,
replace
and
the
defects
(b)
to
and
to
Transport
to
disadvantages
in
the
particular
give
the
finances
those
various
freedom
commercial
the
Government
present
separate
i t s
of
and
own
of
capital
debt.
secure
field.
the
The
operation
British
and
under
Statute
their
with
Ports,
The
a
the
of
London
Commission
railways;
the
maximum
in
their
ana
to
defined
S u c h
of
appropriate
ccnd
ct
special
-h­
by
a
for
responsibility,
and
foster
provide
task
and
which
each
within
Inland
calls
be
duties
The
a
set
as
Waterways,
for
Boards
for
Transport
incorporated
and
those
nature
Board
activities
British
of
managed
concentration
diverse
each
a c t i v i t i e s
responsible
experience.
will
main
be
to
of
is
Transport,
the
the
and
lead
Transport
an,
of
management,
each
efficient
importance
the
should
assets
should
clearly
the
each
object
Waterways
with
that
effective
London
B r i t i s h
to
present
FROPOSALS
definition
problems,
Railways,
necessary
and
qualifications
Docks
of
more
special
particular
main
STRUCTURE
own
administration
Railways,
presents
i t s
d i s c i p l i n e .
management
of
the
Commission
This
devolution
financial
and
Transport
holding
thus
of
GOVERNMENT ' S
propose
board
effort,
new
the
the
a c t i v i t i e s
A NEW
of
a
affairs.
THE
The
of
decided
Commission
by
overcome
have
sation;
practical
11+.
Government
organisation
designed
reconstruct
and
(c)
British
existing
structure
organi
the
the
powers
undertakings.
of
t h e i r
In
problems
view
they
O
will
be
responsible
appoint
their
under
Holding
new
a
The
running
vested
debt
a
the
the
railways
single
Regional
staff
and
investment,
determination
16,
The
a
Railways
and
other
the
to
future
Regional
17.
Area
Railway
The
operation
autonomous
will
thus
will
of
safety,
will
and
be
duties
be
17
for
of
the
such
only
the
those
railways
Notably
matters
research,
shape
the
railway
the
as
over
and
as
capital
responsibility
control
of
be
the
perform
below).
for
will
training
and
part-time
finance
and
the
system.
follows:
Vice-Chairman.
with
special
members.
Boards,
fully
matters
the
of
Regional
(The
and
each of t h e Regional Railway
Boards
the Chairman or General
Manager).
which
responsible
regional
continue
each
account.
be
all
decentralisation
for
running
overall
composed
Chairman
Railway
their
in
responsibility
Boards
Regional
Boards,
grouped
the
system
will
responsible
C e r t a i n f u l l - t i m e members
r e s p o n s i b i l i t i e s .
two
will
showing
however
paragraph
size
the
the
functions
be
for
Board
or
who
be
chart
responsibility
will
negotiations,
A member from
(ordinarily
One
will
A
national
It
(see
will
A full-time
(d)
a c t i v i t i e s
assume
essential
Boards
wage
the
Transport,
below).
will
whole.
are
policies
of
2k
effective
assets
as
Board
para.
Board
an
all
Railway
Railways
national
as
which
entity;
other
of
Board
railway
functions
British
and
the
Minister
18 *
Railways
railways
with
central
page
the
the
(see
Railways
British
the
of
on
to
All
Company
is
British
15.
as
members..
structure
The
direct
railway
which
process
management.
Railway
Commission's
for
Board
replace
the
Jts
Each
region
devolution
To
assist
will
consultants
of
it
present
will
and
be
alone.
They
authority
in
maintain
have
the
management
systems.
concern
of
will
and
carrying
a
regional
suggested
out
i t s
trading
possible
of
bases
/The
for
such
precise
within
the
be
18*
control
contain
be
the
carry
secure
regional
railway
Boards
British
Railways
20,
Ports
The
part
of
London
21 .
the
The
full
the
will
time
the
be
which
would
major
capital
of
Railways
the
small
in
Members.
post
be
Board,
of
number
The
and
Chairman
Regional
will
will
General
Board.
between
national
Member
already
and
approval
The
one
of
stated,
railway
each
be
a
of
policy
the
Member
and
Regional
of
the
Services
and
railway
those
system
shipping
will
services
continue
to
which
be
are
treated
as
system.
Transport
It
will
it
will
B r i t i s h
Transport
B r i t i s h
ports
statutory
Docks
composition
including
management
the
and
whom
will
a
the
in
will
London
close
will
for
of
to
be
be
called
public
Transport
with
common
the
composed
have, s p e c i a l
the
concert
matters
again
continue
number
responsible
D
docks
ocks
Board.
finance
Board.
a l l
Executive
mainly
responsi­
transport
Executive.
the
London
monopoly
As
London
l i n e s
of
concern.
Docks
and
will
of
to
work
in
Transport
of
be
delegated
Railways
The
Board
members
British
the
as
ports
Transport
tims
hitherto,
on
full
on
Shipping
London
present
22.
seat
expenditure,
Board.
railway
b i l i t i e s .
at
a
consideration).
d e v e l o p s ^
Boards
of
under
Transport
Passenger
of
the
Minister.
w i l l ,
and
of
of
is
Board,
the
experience
operation
paisket
extensions
capital
Regional
coordination
Railway
Packet
as
report
require
element
by
will
To
out
strong
appointed
A3.
would
t h e i r
for
the
membership
a
Manager
of
which
worked
The
and
arrangements
expenditure,
must
accounts
at
present
Division
The
those
which
require
more
will
Board
reflect
administered
be
will
transferred
be
functions
important
to
of
be
by
small
dealt
their
with
ports
to
in
affecting
the
Commission's
a
new
number.
the
Docks
centrally.
will
be
Its
The
represented
Inland
23.
Waterways
B r i t i s h
Transport
Waterways
independent
statutory
board
Authority.
This
w i l l
inland
body
waterway
system,,
p r o c e e d i n g
with
the
no
longer
have
a
of
the
new
body
will
which
waterways
The
of
the
Holding
2ij..
Road
Cook
and
incorporated
dire
All
company
purposes
the
an
Waterways
nationalised
responsible
of
for
waterways
composition,
powers
discussion.
It
one
hand,
on
which
Inland
the
disposal
The
imposes
Services,
Hotels,
Son
under
these
form;
enterprise
all,
of
public
they
Ltd.,
the
filling
can
the
will
duties
be
charge
funds,
be
which
and
and,
made
on
to
the
serve.
bus
Group,
Scottish
Bus
Road
Freight
Shipping
Services,
will
each
operated
as
Companies
undertakings
and
with
including
Company
26.
be
Act
concerns
British
ferred
to
the
holdings
-within
27.
the
On
which
the
with
often
Hotels,
now
be
to
the
Group,
and
companies
their
own
boards
Hotels)
are
a l r e auy
-present
Holding
bus
Company.
the
hand
a
interest,
with
companies
the
the
be
under
will
of
The
the
which
SECRET
of
which
limited
which
to
-
the
will
Holding
i t s
Board.
in
certain
will
be
trans­
companies
will
f a l l
Board,­
either
Commission
are
private
subsidiaries
companies
the
i n
are
Railways
Commission^
transferred
-7-
appoint
the-.railv/ays
certain
a c t i v i t i e s
new
oontrolled
with
in
a
as
They
shareholdings
Certain
or
Railways.
will
who
of
field
competition.
Company
are
Commission
general
companies
connected
there
in
minority
Traction
essentially
same
grouped
Minister
including
by
these
the
are
Electric
other
the
they
controlled
connected
in
general—responsibility
the
minority
(except
operate
Commission' s
transport
the
a l l
responsible
The
and
or
be
under
ctors.
25.
of
also
the
as
manage
further
on
system
varied
Transport
Thomas
require
placed
Company
British
British
will
use.
account,
to
other,
It
he
known
and
redevelopment
necessary
the
be
own
transport
ta&e
to
will
hold
essentially
holdings
Railways
in
Board.
Freehold
and
2d.
development
by
The
the
also
Leasehold
Commission
para.
of
is
the
the
It
specially
act
for
the
development,
statutory
and
is
proposed
Boards
to
properties
requiring
equipped
transfer
thus
valuable
a matter
59 b e l o w ) .
organisations
required,
Property
to
and
and
assist
special
to
set
advise
one
as
or
appropriate
connection
disposal
of
property
the
(see
more
in
obtaining
held
attention
up
and
present
Companies
the
in
at
best
with
no
longer
possible
return.
COORDINATION
29.
Coordination
allocation
of
new
the
funds
Minister
advisory
Suitable
of
of
of
of
body,
policy
for
new
the
for
30.
organisation
contact
between
nationalised
where
there
Apart
from
are
to
the
extended.
As
Minister's
main
securing
his
the
and
of
in
investment
the
safety,
case
charge
these
and
to
be
statutory
general
general
and
to
will
be
efficiency
of
Parliament
direction,
finance.
ana
not
for
ana
His
research
will
parts
the
means
of
that
the
be
He
purse.
should
duties
continue.
be
in
will
and
the
for
accordance
continue
of
respect
with
to
appointment
aevelopment,
in
in
industries,
powers
of
closest
the
coordination
his
of
direct
public
industries
control
by
for
undertakings
through
a c t i v i t i e s
responsibilities
them.
a
Council.
necessarily
from
overall
special
-o­
provide
and
by
Boards.
propose
the
assisted
Advisory
nationalised
for
his
be
day-to-day
will
financed
powers
the
component
This
other
responsibility
new
to
transport
of
be
established
the
the
r e s p o n s i b i l i t i e s
training
of
do
including
will
the
be
intended
nationalised
responsibility
discharge
is
Government
existing
he
Boards
Transport
also
industry.
deficits
the
this
Chairmen
Minister
transport
this
Minister's
relation
the
the
will
new
will
coordinating
undertakings
between
new
In
Nationalised
consultation
The
the
investment
Transport.
arrangements
individual
between
of
o
Nationalised
31.
The
Transport
Nationalised
b i l i t y
will
by
relating
him
he
undertakings
to
advise
towards
and
to
the
on
the
Minister
questions
in
particular
The
Advisory
coordination
Minister
development.
Council
Transport
advise
and
the
the
to
Advisory
of
the
on
of
main
questions
referred
the
undertakings
It
of
will
his
have
no
to
it
transport
also
be
available
responsibilities
including
will
responsi­
nationalised
policy.
exercise
Council
Council's
appointments,
executive
or
finance
supervisory
functions.
32.
The
the
Nationalised
Chairmen
of
the
Transport
Boards
British
Transport
Docks,
Holding
Company,
Other
the
nationalised
ordinarily
act
of
as
British
Inland
members
transport
Advisory
Council
Railways,
Waterways
will
be
added,
of
the
of
Transport,
and
drawn
The
consist
London
Authority,
undertakings.
Chairman
will
the
from
Minister
outside
will
Council.
APPOINTMENTS
33o
All
appointments
Minister
to
his
of
In
will
have
making
those
this
Transport.
regard
with
Railways,
Trade
where
The
to
in
Government
the
their
leaders.
own
highest
prove
the
Union
the
boards
other
will
be
made
appointments
themselves
capable.
railway
service
some
to
major
in
make
so
i t
of
be
In
their
may
Boards
by
will
a
important
the
be
subject
the
for
way
have
-9­
be
made
essential
to
use
such
that,
the
so
in
the
top.
to
be
the
far
as
should
produce
undertakings
of
there
those
to
as
part.
grasp
particular,
Minister
can
undertakings
within
within
is
the
which
industries,
large
from
future
posts
It
transport
Promotion
opportunities
however,
plays
shoulo.
various
contribution
management
consider
greater
the
experience.
nationalised
levels
zo
special
manpower
possible,
the
major
Certain
appointments
experience
35.
the
approval.
3h.
by
to
those
who
should
be
much
parts
of
the
all
f i l l e d
to
At
the
from
outset,
outside.
FINANCE
36.
A
both
with
of
far
the
reaching
the
37o
The
(as
serious
changes
FINANCIAL
financial
proposed
financial
cannot
in
now
Exchequer.
in
situation
carry
on
Financial
3
the
railways,
3o.
is
The
interim
plan
will
of
for
the
is
to
The
of
take
the
This
which
the
also
railways.
to
in
-che
financial
to
reap
freedom
The
of
objective
Accordingly
the
Government
for
proposalso
The
figures
recorded
in
the
Commission's
December
31st,
and
l a t e r .
Nevertheless,
of
general
size
and
of
put
they
of
of
large
are
of
the
forward
to
be
give
the
a
modernisation
be
new
the
seen:
organisation
next
recovery.
following
the
position
Sheet
on
worked
out
problem
in
indication
and
the
proposed.
L i a b i l i t i e s
kO.
The
net
31st
December
capital
1959
l i a b i l i t i e s
amounted
to
-10­
of
the
Commission
approximately
an
propose
reconstruction
the
broad
of
Government
over
upon
is
uncertain
to
the
down
s t a r t .
the
yet
financial
Balance
have
fresh
financial
based
scaling
of
railways
are
nature
the
their
proposed
a
the
more
full
view
which
for
last
will
now
in
ana
a
that
become
in
railways
railways
from
drastic
benefits
the
quoted
d e t a i l
Capital
deal
because
serious
support
meet
A
mi^st
action
foundations
IS 59,
to
r e s u l t s
the
the
to
the
inevitable
are
so
therefore
reconstruction
lay
action
to
and
the
Commission,
able
give
and
is
scale
has
the
be
basis
the
necessary
railways
above)
large
that
"working
and
6
u n r e a l i s t i c .
is
railways
time
a
now
financial
greater
find
years
39o
of
and
will
needed
character.
programme,
and
is
urgently
prospects.
i t
the
Commission
reconstruction
specifically
l i a b i l i t i e s
the
without
expectation
debt
of
is
organisation.
of
paragraphs
The
of
state
the
imperative.
existing
reconstruction
RECONSTRUCTION
indicated
they
financial
at
£2000M.,
of
five
o
which
of
£12+OOM.
the
consisted
public
Transport:
and
of
£6O0M.
British
of
and
it
is
reconstruction
is
primarily
2+1.
Some
£LOOM,
attributable
which,
for
in
this
to
the
the
book
U2.
The
some
£2+0OM.
1955
and
There
ever
2+3.
in
in
normal
2+2+0
-
of
debt
of
this
the
should
of
the
of
be
each
relates
losses
the
are
Commission
Responsibility
transferred
case
view,
to
will
be
to
the
based
no
remainder
and
repayment
Account
will
of
which
will
ha
losses
of
is
left.
equivalent
since
as
an
would
be
placed
to
losses
this
been
amount
accordingly,
written
The
the
up
have
to
(including
as
to
ana
be
to
and
made
fixed
written
interest-bearing
amount
review
in
of
including
interest
and
from
p a r t i c u l a r
the
boOK
1955"
treatment
time
of
Amounts
in
respect
of
ascertained
losses
in
respect
of
assets
proceeus).
-11­
a
value
off
modernisation
to
which
of
time,
careful
of
may
fixed
t h i s
in
.
the
review
assets
well
capital
become
down
began
loan
Suspense
nor
off
Government
modernisation
to
between
advances.
these
reduced
has
t h i s ,
accumulated
that
nebt
rank
neither
The
subject
developments
written
obsolete
carry
obligations.
light
acquired
would
(£BOOM.)
on
Of
Exchequer
therefore,
investment
to
by
prospect
l i a b i l i t i e s
-
railways.
have
mainly
outstanding
£i+OOM.
the
which
accumulated
railways'
continue
in
propose,
capital
sum
of
proposed
l i a b i l i t i e s
effect,
financed
They
£2+OOIvi.
the
hands
transferred.
to
been
ana
that
a c t i v i t i e s
The
Government's
of
capital
in
81600M.,
off
the
Minister
self-supporting.
assets
have
£1,2Q0M.
that,
The
be
the
l i a b i l i t i e s
will,
attributable
and
the
in
terms.
Account
to
the
some
this
value
1955
debt
from
Stock
concerned.
been
boards.
written
(para.2+2)
these
£2000M.
have
recovered,,
After
hook
is
1959
be
propose
new
balance
being
should
of
advances
non-railway
main,
v a l u e s of
is,
the
the
amount
appropriate
of
with
transport
have
losses,
on
The
existence
Exchequer
of
the
to
obtain
sufficiently.
The
much
of
the
accounted
1+5*
amount
lost
These
Transport
Suspense
some
return
if
p o s s i b i l i t y
placed
and
Account,
in
written
proposals
Commission
Summary
L i a b i l i t i e s
railway
cannot,
Suspense
will
finances
however,
may
well
be
ruled
capital
reconstruction
summarised
in
the
of
the
following
out
that
have
to
be
British-
Table
of B r i t i s h T r a n s p o r t Commission *s
Capital
and Government's P r o p o s a l s f o r
Reconstruction
Other
Activities
£M*
Capital L i a b i l i t i e s
deducting Capital
£M.
(after
Redemption
investments)
(paragraphs
the
improve
ultimately
Railways
Fund
enable
off.
for
are
however,
1,600
1+0 a n d
1+00
2,000
1+1 )
PROPOSALS
Debt
of
t o be w r i t t e n o f f on
account
R e v e n u e L o s s e s ( p a r a g r a p h 1+2)
Debt
t o be c a r r i e d i n S u s p e n s e
(paragraph
1+4)
Interest-bearing Capital
L i a b i l i t i e s
to be retained
(paragraphs
on
;
1+3)
1+6.
The
B r i t i s h
B r i t i s h
: ' .-
Transport
be
fully
to
the
Exchequer
given
The
of
effect
immediate
£1200M.,
suspense.
of
At
will.be
the
these
relief
in
which
£1+00M,
While
the
and
a l l
800
:
1+00
rights
-
other
the
same
by
of
1+00
capital,
the
for
appropriate
new
2,000
l i a b i l i t i e s
stockholders
time
800
'
r e s p o n s i b i l i t i e s
The
assumed
Capital
of
Stock
assume
Stock,
safeguarded.
Consequences
1+7 o
will
8 00
1 ,600
Transport
Treasury
1+00
1-1-00
TOTAL:
Effect
1+00
existing
will
therefore
amounts
of
debt
Boards.
Reconstruction
proposals
respect
would
be
Government
-
12
of
is
that
obligations
written
regard
-
SECRET
the
off,
these
railways
to
and
the
extent
£800M.
drastic
would
put
measures
be
of
to
as
required
to
financial
t h e i r
take
the
value
prior
though
not
Future
over
to
the
a
burden.
the
to
exist.
public
in
But
provide
an
annual
on
(b)
the
capital
1955?
in
heavy
the
may
since
be
l i a b i l i t i e s ,
railways,
form
effect
have
will
been
t r a n s ­
they
will
f a l l
and
above,
will
by
£800M.
to
railways
of
The
reduced
and
Before
the
capital
borrowings
other
to
for
next
amount
new
a
of
the
will,
however,
to
some
their
meet
in
have
and
;
expenditure;
e.g.
Bank
55).
the
and
total
the
these
a
loss,
-13-
charge
year,
rate
charges
year.
SECRET
2+3
Savings
£60-70M.
operating
of
paragraph
capital
years
borrowings
can
l i a b i l i t y
funds
five
eliminate
to
l i a b i l i t i e s ,
the
railways
£60M.
They
(paragraph
of
carrying
r e l i e f
deposits
may
level
outlined
the
referred
Certain
of
Objectives
:­
( c )
heads
of
these
of
Their
undertaking
another
interest.
New
o n t h e
total
the
only
immediate
( b )
end
to
and
i t s
will
superannuation
have
to
They
£2+0OM.
£2+0OM.
these
date
reorganisation
of
interest
the
losses
that
undertaking
modernisation
shoulders
Prospects
off
( a )
A t
of
desirable
railway
relating
l a t e r
from
capital
£2+0 M .
pay
at
most
appreciated.
the
accumulated
beginning
as
it
fully
of
existing
Exchequer.
writing
suspense
he
l i a b i l i t y
the
Revenue
The
t h e
the
of
the
think
shoulders
the
ceased
to
the'
2+3.
to
removed
ferred
upon
of
resume
have
the
with
also
should
burden
insofar
to
they
size
from
part
except
able
and
whole
greater
r e a l i s t i c a l l y
si tuttipn,
nature
he.to
(a)
deal
now
of
they
under
depending
interest.
will
running
at
a
will
1+9.
The Government
of e l i m i n a t i n g
recognise
the present
that
the task before
operating
loss
£60-70M. a y e a r w i t h i n t h e n e x t f i v e
They w i l l
therefore
under v e r y c l o s e
p o s i t i o n at
t h e end of t h e f i v e
Railways
and moving t o a s u r p l u s
y e a r s w i l l be very
keep t h e f i n a n c i a l
r e v i e w and w i l l
the
p o s i t i o n of
the
formidable.
Railways
make a s p e c i a l r e v i e w o f
years.
the
They w i l l ' e s t a b l i s h
consultation with the railway administration t a r g e t s
of
in
financial
p e r f o r m a n c e w h i c h t h e R a i l w a y s s h o u l d aim t o a c h i e v e f r o m y e a r
y e a r over the f i v e - y e a r
50.
It
that
the
large
is s t i l l
c l e a r on a r e a l i s t i c
51 .
If
the
economic u s e
c o n c e r n of
r a i l w a y s are
situation
applied
Industries
efficiency
Board.
noted,
of r a i l w a y
will
staff
-
t h u s t h e y must b e a
covered.
Council has already
and t h e U n i o n s i d e s o f t h e
Committee
joint
industry for
The
on
success­
beyond
British
considered t h i s ,
appeal by the
most
special
should be extended f a r
so f a r
fair
o p e r a t i o n and t h e
work s t u d y - w h i c h h a s b e e n
Government h a v e w e l c o m e d t h e r e c e n t
and t h e
employers'
c o o p e r a t i o n by a l l
concerned.
and C h a r g e s
Increases
appropriate,
of
and p r o v i d e a
As t h e S e l e c t
In a number o f f i e l d s
Railways Productivity
Railway Pares
during
and t h e Government
to regain solvency,
o f manpower a r e c r u c i a l :
6 per cent,
52.
the
a n d Manpower
t h e new R a i l w a y s
Nationalised
fully
of
powers.
l i v e l i h o o d for t h e i r workers,
the
appraisal
i n t e r i m p e r i o d t o meet r a i l w a y d e f i c i t s ;
Productivity
to
period.
sums w i l l h a v e t o be p r o v i d e d f r o m t h e E x c h e q u e r
seek the necessary
of
i n r a i l w a y f a r e s a n d c h a r g e s m u s t , w h e r e and when
make t h e i r due c o n t r i b u t i o n t o w a r d s m e e t i n g
costs.
-
1J+
­
railway
53.
The
foregoing
debt
and
the
The
other
affairs
to
of
in
this
The
will
hold
field
in
return.
well
as
the
the
should
be
to
different
to
which
These
sector,
of
company
secure
to
The
these
profits
Exchequer
offset
to
of
in
losses
on
however,
another,
have
to
since
it
the
same
be
best
form
other
be
the
possible
of
yield
a
private
will
Holding
similar
to
affect
it
in
like
expected
kinds
the
to
with
operating
be
the
their
applicable
category,
which
the
railways.
conduct
businesses,
may
the
of
Waterways.
are
regulations
businesses
the
some
a
to
year
may,
Inland
in
to
one
aid
remission
only
system
the
businesses
private
apply
taking
Special
is
the
expected
is
to
for
general
that
enterprise.
purse.
accrue
be
the
years
Subject
holding
public
will
in
the
public
l i a b i l i t y
will
with
Company
private
good
of
Boards
i n i t i a l
shares
businesses
of
accounts.
Holding
as
arrangements
character,
their
the
5h.
off
accordance
balance
given
writing
Statutory
in
Boards
special
as
duty
results
Company
for
group
dividends
and
nationalised
transport
undertakings.
Other
55-
Financial
There
Table
in
savings
about
to
the
deposits
railway So
the
observations
(in
of
bank
Transport
This
security
will
the
be
of
the
made
by
of
superannuation
for
of
the
the
to
deposits
new
and
not
Select
of
might
of
are
be
of
which
amounted
any
The
on
Report)
funds
mainly
relief
Government
have
Nationalised
on
the
in
investment
the
are
made
in
the
present
arrange­
no
way
affects
the
in
rights
of
is
obsolescence
undertakings.
-15­
considering
British
They
course,
the
-
the
attributable
Committee
their
in
respect
propose
Consideration
and
in
funo.s
superannuation
and
depreciation
various
do
undertaking.
changes
mentioned
undertakings.
15U
and
unimpaired.
the
1959
Government
consideration,
continue
scale
what
not
l i a b i l i t i e s
December
deposits
Commission's
Commission
ments.
and
paras.150
Industries
the
The
l i a b i l i t i e s
including
31st
l i a b i l i t i e s
savings
other
LuT,
£I4OOM. a t
these
noted
certain
paragraph
bank
to
from
are
Matters
the
with
beneficiaries,
also
being
provisions
given
which
which
to
should
A
SECRET
COMMERCIAL
56.
In
not
he
this
reasonable
r e s t r i c t i o n s
Fares
and
on
The
adjust
quickly
fares
in
competitive
The
Transport
will
r
and
the
adequately
charges
Area
and
The
property
railways
reconstruction
subject
a c t i v i t i e s .
on
the
their
Governments
will
to
it
would
out-of-date
.
a b i l i t y
freight
view,
where
a
the
virtual
no
the
be
and
London
reduce
present
the
r a i l
of
the
charges
longer
freed
bus
railways
and
to
passenger
justified
of
from
fares
Transport
monopoly
Leasehold
by
therefore
except
substantially
59.
FREEDOM
financial
commercial
fo
in
present
conditions.
have
F r e e h o l d
the
r e s t r i c t i o n s
railways
their
Railways
leave
their
present
are,
58.
to
and
"
Charges
57.
over
reorganisation
r
the
Executive
public
functions
in
statutory
London
and
the
.
Passenger
British
transport.
of
control
This
Transport
change
Tribunal.
Property
statutory
r e s t r i c t i o n s
nationalised
transport
on
the
development
undertakings
will
be
accommodate,
by
of
suitably
relaxed.
Pipelines
60.
The
leases,
Commission
pipelines
l e g i s l a t i o n
it
is
on
t h e i r
pipelines
proposed
Railways,
on
already
to
powers
give
to
power
property.
which
certain
lease,
have
the
of
to
Subject
Government
the
provide
new
and
to
may
any
wish
of
general
to
undertakings,
operate
way
promote,
particularly
pipelines
on
t h e i r
property.
Coastal
61.
191+7
Shipping
The
and
Road
1953
competition
examining
commercial
coastal
and
Rail
contain
from
these
provisions
inland
to
Act,
the
in
1933,
and
protecting
transport.
provisions
freedom
shipping
Traffic
the
The
light
railways
industry.
- 1 6 SECRET
and
the
coastal
Government
of
of
the
the
need
Transport
Acts
shipping
are
to
interest
at
give
of
from
present
greater
the
of
LEGISLATION 62.
The
Governments
reconstruction,
major
time
and
for
legislation.
to
Bill
legislation
in
he
freedom
for
of
The
the
and
Government
next
required,
will
new
of
he
structure,
operation
preparation
propose
Session
it
the
commercial
Consultations
complete.
necessary
proposals
to
will
for
will
require
take
some
introduce
Parliament.
financial
the
Should
interim
introduced.
CONCLUSION
63.
of
Her
these
Majesty's
problems,
difficulties
with
confronted.
to
establish
They
for
put
the
The
what
these
and
sought
which
to
the
is
best
throughout
practical
nationalised
have
for
the
forward
undertakings
soundly
have,
find
Government
proposals
various
efficient
Government
and
been
-
17
guided
­
to
best
the
the
consideration
the
undertakings
solely
and
providing
especially
based.
answers
transport
industry
as
t h e i r
by
for
best
their
the
are
concern
country.
opportunity
railways,
to
become
CHART REORGANISATION OF THE NATIONALISED TRANSPORT UNDERTAKINGS THE NEW STRUCTURE MINISTER "
LONDON PASSENGER
TRANSPORT BOARD
RAILWAYS BOARD
LU
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NATIONALISED TRANSPORT ADVISORY COUNCIL
BRITISH TRANSPORT
DOCKS
U
j
i l l
INLAND
WATERWAYS
AUTHORITY
HOLDIN& COMPANY
M
Regional Railway Boards
British
Road
Services
Tilling
Due
Group
Scottish
Bus
Group
Hotels
Road
Freight
Shipping
Services
homa s
Thoma
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Qook
Ltd.
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Holdings