HC Deb 09 July 1984 vol 63 c687
10. Mr. Colvin

asked the Secretary of State for Transport what progress there has been with the privatisation of Sealink.

Mr. Ridley

The British Railways Board invited formal bids for Sealink last week and bids have now been received. These are now being considered by the board.

Mr. Colvin

Does my right hon. Friend accept that that news will be welcomed by Sealink's employees, whose morale was beginning to suffer because of uncertainty about the company's future? Was he aware of some alarmist talk about industrial action over the plans to privatise Sealink, and does he therefore welcome the news that the executive committee of the National Union of Seamen has instructed its officials to seek talks with prospective buyers of Sealink as being in the best interests of all concerned with the company's future?

Mr. Ridley

I am grateful to my hon. Friend, and I confirm that that much more sensible course has been adopted by the NUS, which will seek talks with the successful bidder. The offers expire on 20 July, and I hope that a decision can be made before then.

Mr. Stephen Ross

Can the Secretary of State assure the House that he is satisfied with the proposed privatisation of Sealink? Would it not be better to scrap the entire deal and start again, or let British Rail get on with the job of running the service properly?

Mr. Ridley

Scrapping the entire deal would not do much good for ferries to the hon. Gentleman's constituency. He would not be thanked on the Isle of Wight for his advice, and I shall not take it. We are evaluating the offers, and the sale will be announced as soon as possible.

Mr. Prescott

Is the Secretary of State aware that British Rail Investment Ltd., the body responsible for selling Sealink, has a deplorable record in the disposal of public assets—hotels and land —and in giving away Hoverspeed to management for £11 million, which was no price at all? Will he assure us that this time he will step in to prevent the disposal of an asset at a deplorable price and against the taxpayers' interest if the price so reflects it?

Mr. Ridley

I would not agree to a sale at a price which did not reflect the value of the assets being sold. The relationship between British Rail and Sealink has been long and highly integrated. To some extent they depend upon each other, so the slight difficulty in defining the exact demarcation between the two has caused some comment. However, that is an inevitable part of the sale of such a company.