Transport (Government Policy)

Part of the debate – in the House of Commons at 12:00 am on 21 May 1952.

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Photo of Mr Hugh Wilson Mr Hugh Wilson , Truro 12:00, 21 May 1952

This is an average and we cannot compare one particular railway with British Railways.

I see that the lowest interest paid was in 1932 and was 2.57 per cent. So the railways were continuously paying before the war, and I am not sure that they have not been paying continuously since, because if we look at the figures for 1950 —the latest figures are not yet published —the net traffic receipts were £26,330,000. It is difficult to relate these traffic receipts to any particular capital sum because the alleged loss of the Transport Commission is related to the whole of British Transport stock and the alleged deficit of £9 million was related to the capital of the Commission of £1,259 million, and not with the capital of the railways only.

As the capital compensation paid to railway stockholders at the time of nationalisation was £900 million this meant that on traffic receipts of £26 million the profit is something in the nature of 3 per cent. I notice that in another place Lord Lucas mentioned the very high figure of railway capital at the present time as £1,000 million. If that is correct £26 million is still a profit of 2½ per cent. The idea that the railways are losing heavily is much exaggerated. With proper management and the opportunity of improvement I do not see why they should not continue to earn a reasonable amount which should enable them to make the improvement to satisfy the public, and, at the same time, provide a reasonable future for the men employed on the railways.

It seems to me that hon. Members opposite are wrong on all these points, and what the White Paper does is to meet all the arguments that they have advanced against the transport system of this country. I do not think there is too much traffic on the roads, but if there is then this White Paper says that—