Bus Companies (Hansard, 23 November 1992)

§ Mr. Macgregor

Following the autumn statement by my right hon. Friend the Chancellor of the Exchequer, I would like to remind local authorities that if they sell their public transport companies (PTCs) by 31 December 1993, they will be able to devote the proceeds to projects such as the improvement of public transport. After that date 50 per cent. of the proceeds will have to be used for the reduction of their debt. I trust this will encourage the sale of the remaining PTCs before we fulfil our manifesto commitment to make their sale compulsory.

Although I expect that future sales of PTCs will be by competitive tender, I am pleased to say that my right hon. Friend the Secretary of State for the Environment has agreed that the time limit previously announced in relation to pension arrangements for those PTCs where sales to buy-out teams have already been agreed in principle, will be extended to 30 June 1993. The staff concerned will be able to remain within the local government superannuation scheme if the sales are completed by that date, and I would urge all concerned to meet this deadline.

I have today issued a direction to the Greater Manchester Passenger Transport Authority, the sole shareholder of Greater Manchester Buses Ltd., to produce a plan to divide the company into separate smaller companies. The direction is issued in accordance with section 61 of the Transport Act 1985 and the plan must be submitted to me by 30 March 1993.

I have taken this step to bring the full benefits of bus deregulation to bus passengers in Greater Manchester. The very size of Greater Manchester Buses has tended to inhibit competition between operators and I am convinced that dividing the company into smaller units will bring better services to passengers. I look to the PTA, using its expertise on public transport matters and local knowledge, to produce a workable plan to achieve the division of Greater Manchester Buses.