§ Mr. Neale asked the Secretary of State for Transport if he has approved the merger between British Rail Hovercraft and Hoverlloyd Ltd.
§ Mr. David Howell:I have today given my consent under section 14(4) of the Transport Act 1962 to the acquisition by the British Railways Board of shares and securities in Hoverspeed, the company which is being formed by the merger of British Rail Hovercraft Ltd. and Hoverlloyd Ltd. The new company will begin operating on 25 October.
Though jointly owned by subsidiaries of the British Railways Board and Brostroms Rederi A B, Hoverspeed will be controlled and managed by an independent board of directors. It is not the railways board's intention to exercise direct control, or to provide further finance; and on this basis the new company will be outside the public sector.