The meaning of words

I am by nature a logical thinker, and clear language is important to me. When teaching corporate governance to directors and boards, I stress the importance of structured thinking and clearly worded policies.

I am also a transport planner. In the 1980s there was a high profile case in which the judge seemed unable to distinguish between ‘Economic’ and “Economical’.

• Economic: Refers to the broader principles of economics, including supply and demand, market behaviour, and the overall economic environment.
• Economical: Relates to efficiency in the use of resources, often associated with cost-effectiveness.

In 1984, the London Transport Executive (LTE) sought to increase bus and underground fares in London. The increase was met with public opposition, and a legal challenge was mounted against the fare hikes. The case was taken to the High Court to determine whether the fare increases were lawful under the terms set out in the relevant transport legislation.

One of the central arguments against the fare increases was that they were not "economically justified." This sparked a debate about the proper interpretation of the terms “economic” and “economical,” which have distinct meanings.

The judge in the case reportedly conflated these two terms. He emphasised that the fare increases were justified in terms of the overall economic context, which could include revenue generation and financial stability for the transport system. However, the judge failed to grasp that the term "economical" was pertinent to the affordability and efficiency of the fares for the average commuter.

The decision ultimately upheld the fare increases, but the judge’s misinterpretation of "economic" versus "economical" drew criticism from legal scholars and commentators.

The case highlighted the importance of precise language in legal judgments and the necessity for judges to clearly differentiate between concepts that may appear similar but have significant implications in economic policy and public welfare.

The case against London Transport fares underscored the complexities of economic terminology in legal contexts and the consequences that arise from misunderstandings of such distinctions. It illustrates how judicial misunderstandings can impact policy implementation and the importance of clarity in legislative language.

The application of ‘Equity”

I was involved in a similar case where the interpretation, in this case tits application, of a word was a point in dispute.

In the 1970s I was responsible for public transport coordination in the county of Dyfed. Dyfed had been created from the three counties of Carmarthen, Pembrokeshire and Cardiganshire. It included very different communities from a steel town, through mining villages and market towns to deep rural.

I noticed that there were very different fare levels on different routes and sought to introduce some level of ‘equity’ between them. At a fares hearing, the Traffic Commissioner disagreed with me and argued that it was ‘inequitable’ that some passengers would have to incur higher fares increases than others. My position was that this would freeze ‘inequity’ into the future.

Richard Winfield is the author of The New Directors Handbook, creator of The Essential Directorship and Strategic Company Secretary masterclasses and curator of the CPD 2.0 Professional programme, which provides a stream of governance alerts and management insights.

With a successful career as a consultant, coach, facilitator, and trainer, he works internationally with individuals and teams at board level. He assists clients in bringing structure and clarity to their thinking.

Richard help directors and boards become more effective by clarifying goals, improving communication and applying sound corporate governance.

For individuals, he facilitates their career advancement by helping them clarify their life goals, discover forgotten or ignored talents and by developing a comprehensive package to raise their profile and break through barriers. He then provides editorial support for job applications and prepares them for interviews. https://threeticks.com/dream-job-guide

Clients approach Richard to help bring structure and clarity to their lives.

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#LondonTransport #FareIncreases #JudicialDecisions #EconomicPolicy

#LegalMisinterpretations #PolicyImplementation #EfficientGovernance #StructuredThinking