HC Deb 25 November 1993 vol 233 cc101-2W
Mr. David Porter

To ask the Secretary of State for Transport what steps he is taking to encourage employees of BR to bid for franchises on management buy-out for services in East Anglia.

Mr. Freeman

Financial assistance will be available towards the costs of formulating MEBO bids. British Rail will reimburse costs on a scale of 85 per cent. of the first £10,000 of costs and 75 per cent. of the remainder, up to a maximum of £100,000 for each bid team.

While the Railways Act 1993 enables BR to be franchisee, it also empowers the franchising director not to invite BR to bid if he considers that desirable for the purpose, inter alia, of promoting the award of franchises to MEBOs.