HL Deb 27 January 1982 vol 426 cc949-50

2.42 p.m.

Baroness Elliot of Harwood

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government when they expect the National Freight Corporation to be sold to the management and employees as previously agreed.

The Earl of Avon

My Lords, an agreement was announced on 18th January for the sale of the National Freight Company Limited to the National Freight Consortium public limited company, for £53.5 million. This consortium company has been set up expressly for the purpose of enabling the managers and employees to buy the Government's shares in the National Freight Company. It has arranged finance from its bankers for the acquisition, subject to the consortium raising a minimum of £4,125,000 from employees and pensioners of the National Freight Company. The consortium expect to complete the purchase during February.

Baroness Elliot of Harwood

My Lords, while thanking my noble friend for that reply, may I ask him whether the response in taking up the shares has been as enthusiastic as we hoped it would be, and does he think the scheme will go ahead the moment it starts?

The Earl of Avon

My Lords, we have every hope the scheme will indeed go ahead. In fact, to answer my noble friend, the scheme was published only a few days ago and as yet we cannot monitor the response.

Lord Underhill

My Lords, as the management of the new corporation will be precisely the same as the management of the National Freight Corporation, may I ask the noble Earl to say what is to be gained by the transfer, except possibly to carry out the doctrinaire policy of the Government? What will be the net result to the Treasury, after making allowance for the payment of British Rail pensions?

The Earl of Avon

My Lords, as the noble Lord will anticipate, this is of course a privatisation exercise of which we are very proud. The net result will be £6 million.