§ Mr. John Townendasked the Secretary of State for Transport whether he can now report on the findings of the study undertaken by Touche Ross and Co. of the attribution of the debt of the National Bus Company to its subsidiary companies; and if he will make a statement.
711W
§ Mr. David HowellCopies of a summary of the consultants' report and their conclusions have been placed in the Library today.
The report, which was commissioned jointly by my Department and the National Bus Company, analyses the relationship between NBC's interest charges and the earning capacity of its subsidiaries, and discusses the effect of the company's capital structure and the attribution of debt on decision making. The consultants propose a new method of allocating interest between subsidiary companies, which they believe would provide NBC with a better framework for its future operations.
The implications of these recommendations are wide-ranging and will call for careful consideration in the light of discussion with the company.