§ Sir John WheelerTo ask the Secretary of State for Transport if he will make a statement on the privatisation of London Buses Ltd.
§ Mr. NorrisMy right hon. Friend has written to the chairman of London Transport to inform him of the Government's agreement in principle to the early privatisation of the subsidiaries of London Buses Ltd.
Before the companies can be sold, the services they operate on behalf of London Transport must be put on a clear contractual basis. Forty per cent. of the London Transport network is already operated under contract by private firms or London Buses Ltd. companies, and there will be a further round of competitive tendering next year to increase that proportion. The remaining routes operated by London Buses Ltd. subsidiaries will be put on a formal contractual basis from 1 April 1993, paving the way for the London Buses Ltd. companies to be offered for sale from late 1993 onwards.
391WThe Government remain firmly committed to deregulating the London bus market at the earliest opportunity. Early privatisation will help to ensure that competition in the deregulated market takes place on a free and fair basis.