§ Mr. Allan StewartTo ask the Secretary of State for Scotland how he intends to ensure fair competition between competing employee-based bids under paragraph 15 of the Scottish Bus Group disposal programme he has prepared under section 1 of the Transport (Scotland) Act 1989; and if he will make a statement.
§ Lord James Douglas-HamiltonThe disposal programme sets out the basis on which the Scottish Transport Group is required to consider bids, including the information required in bids and the basis on which a preference will be given to bids involving employee participation. My right hon. and learned Friend is satisfied that the arrangements will ensure fair competition between all bids.
§ Mr. Allan StewartTo ask the Secretary of State for Scotland how he intends to ensure sustained and fair competition under section 2 of the Transport (Scotland) Act 1989 where there is an association between the management of neighbouring companies after privatisation; and if he will make a statement.
§ Lord James Douglas-HamiltonThe basis on which bids for Scottish Bus Group companies will be considered is set out in the disposal programme which my right hon. and learned Friend recently published under the Transport (Scotland) Act 1989. Copies of the disposal programme86W are available in the House of Commons Library. Any mergers between bus companies after privatisation will be subject to competition law.
§ Mr. Allan StewartTo ask the Secretary of State for Scotland what consultation he intends to undertake with employees in relation to privatisation of the Scottish Bus Group where there are competing bids involving a controlling interest by employees for a particular subsidiary.
§ Lord James Douglas-HamiltonNone. It is the responsibility of the Scottish Transport Group to implement the disposal programme for the Scottish Bus Group. The disposal programme makes it clear that a price preference will be given to bids involving a controlling interest by employees, and that there could be more than one such employee-based bid. The group is required to seek my right hon. and learned Friend's consent for sales.