§ Mr. Nigel EvansTo ask the Secretary of State for Transport, what steps he is taking to encourage the privatisation of local authority owned airports and bus companies.
§ Dr. MawhinneyThree public airport companies have been privatised in recent years, and discussions are at various stages in relation to some of those still in the public sector. Similarly, 28 bus companies, including the eight largest, have moved successfully into the private sector.
We welcome these developments, and we are continuing to encourage other airport and bus company owners to consider seriously the options for privatisation. We have therefore decided that, for a two-year period beginning on 1 April, the set-aside rate for receipts by local authorities from sales of shares in public airport companies will be reduced from 50 per cent. to 25 per cent. We have also decided that the set-aside rate for receipts from sales of bus companies should be reduced to 25 per cent. for a one-year period from 1 April. My right hon. Friends the Secretaries of State for the Environment and for Wales will be making amending regulations later this month.