§ Mr. Marlowasked the Secretary of State for Transport what is his estimate of the average costs involved to local authorities in setting up new transport companies; and how these costs arise.
§ Mr. David MitchellOn the assumption that my hon. Friend is referring to the setting up of public transport companies, my right hon. Friend and I do not have an estimate of the average cost. Where the cost has been significant it has generally arisen from payments of compensation to employees of the local authority who took early retirement or redundancy. Some councils have also had to retain liabilities arising from previous borrowing in order to establish commercially viable companies. These steps have led to more efficient operations from which both ratepayers and passengers will now benefit.