HC Deb 29 October 1981 vol 10 cc431-2W

Mr. Meacher asked the Secretary of State for Transport if he will list those State-owned assets for which his Department is responsible which have been already privatised with dates of the sale in each case; how much funding has been raised by their sale or is expected to be raised in future; what further plans he has for privatisation of publicly-owned assets in future; and what sums he expects to raise in each case.

Mr. David Howell:

Leases of 29 of the 38 English motorway service areas have so far been sold, raising £42 million. The total proceeds are expected to exceed £48 million.

I have recently agreed terms for the sale of National Freight Company Ltd. to a consortium of management and employees for £53.5 million. The net proceeds, after funding the company's pension deficiencies, will be about £6 million. Completion is expected in Janusry.

I am proposing to offer to the public as soon as possible shares in the holding company of the reconstituted British Transport Docks Board. The proceeds will depend on market conditions at the time of sale.

The British Railways Board is taking the lead, through a specifically formed subsidiary company, British Rail Investments Ltd.—BRIL—in the introduction of private capital into some of its operations. Three Scottish hotels owned by British Transport Hotels Ltd. have been put into a new company, Gleneagles Hotels Ltd., which began trading in June. BTH received £10.35 million, part of it in deferred payments, of which £4.5 million was used to purchase loanstock and shares in the new company.

British Rail Hovercraft Ltd. merged with Hoverlloyd Ltd. on 23 October to form a new operating company, Hoverspeed Ltd.

Proposals are currently being developed by BRIL for the introduction of private capital into Sealink (UK) Ltd., the rest of British Transport Hotels Ltd. and a portfolio of British Rail property. The proceeds will depend on the timing and form of each disposal.

I hope to introduce legislation next Session for further privatisation. At this stage, it is not possible to state the likely proceeds which will arise.