HL Deb 20 March 1986 vol 472 cc1044-5

3.5 p.m.

Lord Sandys

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

The Question was as follows:

To ask Her Majesty's Government what effect transfer to the private sector has had on the workforce of the National Freight Corporation.

The Parliamentary Under-Secretary of State, Department of Transport (The Earl of Caithness)

My Lords, the transfer of NFC to the private sector was by means of employee ownership, the effects of which have been beneficial at every level of the business, from commitment at the workplace to involvement in strategic decisions.

Lord Sandys

My Lords, I thank my noble friend for a very encouraging reply. Can he say whether it is the present intention that there will be a public flotation after 1987 or whether this is, as at present arranged, strictly an employee participation in the shareholding?

The Earl of Caithness

My Lords, whether the company goes on to the Stock Exchange is up to the company and not up to the Government, but I can confirm that my noble friend is right, because the consortium's articles of association prevent it from going public before 1987 at the earliest.

Lord Underhill

My Lords, although everyone will be appreciative of the progress made by the National Freight Corporation, does the noble Earl agree that these are the same workpeople who were working when they were part of the nationalised industry? Does this not prove that the National Freight Corporation was a profitable enterprise when under public ownership and that it would have remained a very useful combination for an integrated national transport system?

The Earl of Caithness

No, my Lords. I disagree with the noble Lord on a fundamental point. It is not necessarily the same workforce because the numbers have increased since NFC was privatised. Before that, the numbers were going down.