Page:The Reshaping of British Railways (Beeching Report).pdf/59

 Estimated financial improvement of the order of £ m. per annum

Concentration of sundries traffic

Introduction and development of Liner Trains—net earnings in five years time, say

Reduction in the loss on existing unprofitable traffics by commercial measures, say,

Additional net earnings assuming that traffic not on rail but which on several screenings, including cost screening, is seen to be favourable to rail, is secured to the extent of half the potential volume in the next five years, say,

Reduction in the expenses of general administration

15-20 10-12 5-6 10-15 3-4

These estimates are not fully additive but are not subject to any serious measure of overlap.

The list is not an exhaustive summary of the measures referred to in the body of the Report. In particular, whilst some of the estimates reflect improvements in efficiency associated with major changes, no figure is included to cover the summation of a multiplicity of efficiency improvements of a more detailed kind, which could be made with or without the plan. At this time, and in the face of great change, it would be unrealistic to formulate such an estimate, but there can be no doubt that higher standards of utilisation of staff and equipment will bring substantial rewards.

The proposals in respect of the continued replacement of steam by diesel traction, the introduction of Liner Trains, and the reorganisation of the arrangements for Sundries traffic, would involve capital expenditure of the order of £250 m. There would, therefore, be a substantial rise in interest charges to set against the estimated financial improvement credited to these proposals.

In addition to the proposals referred to in the plan, major modernisation works are already in hand, including the electrification on the London Midland Region. These modernisation works will themselves contribute to the improvement in the financial position of British Railways.

The proposals put forward in this Report have been formulated for the purpose of shaping the railways towards a sound and viable condition in the future, without assuming any major changes in the role which they are expected to fill or in the framework within which they are expected to operate. The Railways Board is aware, however, that direct measurement of profitability is not the only criterion which can be applied when determining the best use of railways as a part of the transport system, in relation to the social and industrial structure as a whole. The Board is satisfied, however, that, although they have not shaped their proposals upon the basis of hypothetical changes beyond their control, or with regard to responsibilities which do not at present rest upon them, none of the proposals put forward here does violence to concepts which others might reasonably have wished to include.