§ Mr. Tony LloydTo ask the Secretary of State for the Environment what considerations were taken into account in deciding which bid was successful in the sale of the eight freight depots by British Waterways Board to Leggett Freightways; what conditions of sale were offered by the Leggett Freightways which enhanced the employment conditions of British Waterways Board employees over and above those provided by statute; and why the sale was spread over five accounting years.
§ Mr. MoynihanIn assessing bids, the British Waterways Board took into account all relevant considerations, including the financial basis of the bid, the nature of the firm's interest and the implications for BWB employees.
The bid from Leggett Freightways, as well as being the most financially advantageous for the board, provided the best prospects for the long-term future of the employees concerned. Their conditions of service on transfer will be unchanged in accordance with the Transfer of Undertakings (Protection of Employment) Regulations 1981. For pensions, which are not covered by the regulations, employees will initially remain in the BWB scheme. Leggett Freightways has undertaken to introduce within six months a scheme of its own which will provide comparable benefits at comparable levels of contribution.
The arrangements for payment of the purchase price over five years compare favourably on the basis of net present value with the terms offered in other bids.