HC Deb 29 April 1981 vol 3 cc770-1
3. Mr. Lennox-Boyd

asked the Secretary of State for Transport what plans he has for the introduction of private capital into the public transport industry.

Mr. Fowler

The Transport Act 1980 provided powers to return the National Freight Co. Ltd. entirely to the private sector. The current Transport Bill provides for the introduction of private capital into both the British Transport Docks Board and British Rail's subsidiary businesses. There are therefore plans for the introduction of private capital or the introduction of new competition affecting all the transport industries for which I am responsible.

Mr. Lennox-Boyd

Does not my right hon. Friend agree that of all the public sector industries for which the Government are responsible, British Rail has been the subject of the greatest constructive dialogue between management and the Government for the introduction of private capital, which can only benefit both the public and British Rail employees?

Mr. Fowler

I agree with my hon. Friend's last remark. The introduction of private investment will benefit the subsidiary companies of British Rail, particularly companies such as British Transport Hotels. That is why the British Railways Board agrees to this way forward.

Mr. Stoddart

Can we assume that the right hon. Gentleman has no plans to hive off, or to introduce private capital into, British Rail workshops, which do extremely good work on an organised basis? Any plans to hive off or introduce private capital into that sector of British Rail would cause much trouble.

Mr. Fowler

As the hon. Gentleman will know, no decision has been taken on the matter. The Transport Bill now going to the House of Lords gives the Government powers over the subsidiary companies of British Rail, and that would include British Rail Engineering. However, the hon. Gentleman is right when he says that there are no plans in this respect at present.