§ Mr. WilsonTo ask the Secretary of State for Transport what action he intends to take against the officials who were involved in preparation of documents marked "not for National Audit Office eyes" in relation to the sale of British Rail Maintenance Ltd. [15724]
§ Sir George YoungNone. They acted properly and in accordance with long-standing guidelines agreed with the National Audit Office and the Treasury.
§ Mr. WilsonTo ask the Secretary of State for Transport what was the cost of(a) the Price Waterhouse report and (b) the Ernst and Young report on the sale of the British Rail Maintenance Ltd. depot at Eastleigh. [15725]
§ Sir George YoungThe Price Waterhouse report, which covered only the sale of the Eastleigh depot, was commissioned by the British Railways Board. I understand that it cost about £30,000. The separate Ernst and Young study commissioned by the Department of Transport embraces the sale of all six depots. The price is not expected to exceed £45,000.
§ Mr. WilsonTo ask the Secretary of State for Transport if he will list the documents prepared by his officials in relation to the rail privatisation programme in the past 12 months, which are marked "not for National Audit Office eyes" or subject to similar restrictions. [15726]
§ Sir George YoungNo. Documents designated "not for NAO eyes" are held on files with that privacy marking. In accordance with Treasury guidance of 15 July 1988, such files retain their privacy marking until one year after the publication of the relevant Treasury Minute. All such files are subject to regular scrutiny by Department of Transport Internal Audit and copies of their reports are sent to the National Audit Office.
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§ Mr. WilsonTo ask the Secretary of State for Transport when he first received reports of criticisms of the Eastleigh sale contained in the Price Waterhouse report; and what action he took. [15727]
§ Sir George YoungOfficials first became aware of BR concern about the sale of the Eastleigh depot in September 1995. An early draft of the Price Waterhouse report on the sale of the Eastleigh depot was shown to my Department in October 1995. Officials urged the British Railways Board to widen the study remit to cover the sales of all the six depots and to establish explicitly whether the agreed sale procedures had been properly followed. A further report was received in my Department on 13 December. It gave comfort on the value BR obtained for the Eastleigh sale, but pointed to shortcomings in sales procedures; and dealt only with the Eastleigh sale. Following discussion with the Treasury and with the National Audit Office, whose own examination of the BRML sales had started in June 1995, my Department commissioned Ernst and Young to examine the sale of all six depots. The National Audit Office, at the request of my Department, accompanied the Ernst and Young investigating team. Ernst and Young's emerging findings—which will be placed in the Library—show that the BRML sales were competitive and fair, but confirm that BR procedures needed some improvement. The BR board has strengthened its procedures and will ensure that they are properly implemented. Ernst and Young expects to complete its work shortly.
§ Mr. WilsonTo ask the Secretary of State for Transport if he will make a statement on the circumstances in which it was decided to replace Price Waterhouse with Ernst and Young, as consultants on the Eastleigh British Rail Maintenance Ltd. sale review. [15728]
§ Sir George YoungI refer the hon. Member to my answer to the hon. Member for Aylesbury (Mr. Lidington) on 14 February, column574. The Price Waterhouse study was commissioned by the BR board. The Ernst and Young review has been separately commissioned by the Department of Transport.