Mr.Bennett reported that the investigations into the services in the Lancashire area were going ahead and he pointed out it was likely that what was recommended by the working party might well differ appreciably from the proposed Manchester Parts 4, 5 and 6 schemes in their present form.
The Chairman stated that, bearing in mind the aim to elimate steam traction south of Leicester by the end of 1963, and the fact that diesel multiple units for this scheme would not become available until after completion of the Euston - Manchester/Liverpool electriification, it was apparent that the St.Pancras - Leicester/Nottingham services would have to be operated by diesel locomotive hauled trains. If these services were subsequently to be operated by multiple unit trains it would be necessary to show financial justification for the change.
Mr.Gould added that during the period of intensive engineering work on the Euston line, and the consequent diversion of traffic to the Midland Lines, it would in any event be inopportune to implement the diesel multiple unit scheme with augmented services on the St.Pancras line.
It was emphasised by Mr.Andrews that, although the scheme would make an important contribution to the reduction of the Region's present overall net deficit, the estimated return on capital employed, based on rolling stock alone, was very low and that the increase of 40% in mileage would need to be substantiated.
In view of these circumstances, it was decided that the scheme should not go forward at the present time.
It was pointed out by Mr.Bennett that the scheme was part of the overall pattern for the dieselisation of the North Wales passenger services and, with the closing of the Denbigh line, the introduction of the scheme would facilitate the closing of Rhyl motive power depot. Only three 2-car sets were involved, which can be made available from the regional stock, and facilities for maintenance were already available at Chester and Llandudno Junction.