§ Mr. KnapmanTo ask the Secretary of State for the Environment what progress he has made in selling the building management businesses.
§ Mr. Curry[pursuant to his reply, 24 June 1993, c. 247]: I am pleased to be able to announce the exchange of contracts for the sale of the PSA building management businesses BM South East and BM South and West. The businesses have been sold to a joint venture between Pell Frischmann Consulting Engineers Ltd. and Matthew Hall Ltd., a subsidiary of AM EC plc.
This sale will benefit taxpayers, staff and customers. The next step is for staff to choose individually whether to transfer to the privatised business. The future of the businesses now lies in the private sector and I hope many staff will choose to transfer with it. Completion of the sale is expected during the next three months.
The joint venture will pay the Government a net £11.4 million for the two businesses over the next four years. Government will in addition meet the costs of redundancies, should they be necessary, up to a agreed figure in the first five years following completion of the sale. The redundancy entitlement of transferring staff will be guaranteed by Government for five years after the sale. Further details cannot be released until all the sales have been completed.
The joint venture brings together a major contractor and an established engineering consultancy. I am confident that the combination of their commercial skills with the strengths of the BMSE and BMS&W work forces will give the businesses a sound future in the private sector.
I hope to make further announcements soon about the sales of the other three BM businesses.