HC Deb 24 April 1989 vol 151 cc638-9
2. Mr. Brandon-Bravo

To ask the Secretry of State for Transport if, when considering proposals for privatising local authority transport operations, he will give full consideration to the desires of employees to participate in buy-outs.

The Minister for Public Transport (Mr. Michael Portillo)

Yes. When a company is sold by competitive tender, we encourage the vendor to give the employees a reasonable opportunity to acquire a controlling interest, and we have been prepared to consider some sales by single tender to employees.

Mr. Brandon-Bravo

My hon. Friend knows that Nottingham City Transport was the largest municipal undertaking which was affected by the Transport Act 1985. Is he aware that that undertaking has confounded the prophets of doom as it is now a successful company which pays a dividend to its owners in the city rather than one which milks the ratepayer? The staff and employees of that undertaking want to share in the success. Above all, they want to secure their future. They are concerned about the future and they want to buy a stake in the business that employs them. What help and advice can my hon. Friend offer?

Mr. Portillo

I am very pleased with the success of the company and that the prophets of doom have been confounded. I see no reason why local authorities should want to own bus companies. I suggest that the staff should try to persuade the local authority to prepare a proposal for privatisation which includes employee participation.

Mr. Snape

Has the Minister seen the report on the future of West Midlands Travel, prepared by Peat Marwick McLintock? Does he agree with its conclusion that the breakup of West Midlands Travel would be generally disadvantageous to the travelling public?

Mr. Portillo

I have not seen the report, although I am aware of the seminar on the subject that was organised last week. We have sent a proposal to the passenger transport authorities requesting their response to a suggestion that the companies might be split. I look forward to reading their responses and shall consider them carefully.

Mr. Favell

Is my hon. Friend aware that the Greater Manchester passenger transport authority, having decentralised the operation of Greater Manchester Buses at the time of decentralisation, is now recentralising it, not for the sake of efficiency, but to make it more difficult for employees to indulge in buy-outs? Is he aware that there have been great successes? For example, the southern division has taken on enormous competition from the private sector, yet it is carrying more passengers than ever before? Is he aware that the engineering division will have to sack people because it has been forbidden to carry out private sector work?

Mr. Portillo

I am distressed at what my hon. Friend tells me. Greater Manchester is in very much the same position as West Midlands Travel in that a proposal letter has been sent by my Department and we are now receiving responses from the PTA and Greater Manchester Buses about the suggestion that there might be a splitting of the company. We shall consider their responses very carefully.