Transport Holding Company Bill

Part of the debate – in the House of Commons at 12:00 am on 16 January 1968.

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Photo of Mr Stephen Swingler Mr Stephen Swingler , Newcastle-under-Lyme 12:00, 16 January 1968

I wish the hon. Member would read the Transport Bill. The hon. Member is somewhat behind. I would advise him to consult—it is available in the Vote Office—the part which deals with the powers and functions of the passenger transport authorities and also with the establishment, which is the point I am coming to, of the National Bus Company and then it will dispel from his mind any misleading impression about the matter.

In fact I am coming on to this point. Since our White Paper on passenger transport was published three private bus operators have written to the Minister of Transport offering to negotiate on the acquisition of their undertakings and others have approached the Transport Holding Company. It may well be that the acquisition of some of those undertakings would appear to the Transport Holding Company to make good commercial sense, and it is necessary, therefore, to leave some provision and scope for this.

I would say a word about Clause 1(2) of this Bill. It is intended to remove any possible doubt that the Transport Holding Company is entitled to purchase shares in transport and related undertakings. Hon. Members may well be surprised, especially those who were involved in the passage of the 1962 Act, that this is thought necessary, since the Transport Holding Company has been making such purchases for a long time under the previous Government and under the present Government. Certainly the Company has power under Section 29(6) of the Transport Act, 1962, to subscribe for and acquire securities, and generally to carry on any business usually carried on by a holding company.

It is quite clear, however, that the wording of the Section is somewhat obscure, since these powers to do these things have to be exercised with the object of holding and managing the securities "vested in them". The Minister has been advised that there is some doubt as to the precise construction to be placed on Section 29(6) of the 1962 Act in relation to transactions involving the acquisition of shares, such as, for example, the proposed purchase from the British Electric Traction. Therefore, it is right to remove any possible doubt about the legality of these transctions, both those which have already taken place and any which may be entered into subsequently.