PSA Building Management Scotland (Hansard, 13 July 1993)

§ Mr. Henderson
To ask the Secretary of State for the Environment what arrrangements will be made for maintenance of redundancy and pension arrangements of the PSA Building Management Scotland when the sale of the organisation is completed; and if the Department will be responsible for any redundancy costs incurred by Serco in relation to staff previously employed by the Property Services Agency.

§ Mr. Baldry
Staff severance entitlements transfer on sale under the Transfer of Undertakings (Protection of Employment) Regulations 1981 and are protected thereafter by employment law. A replacement pension scheme which is broadly comparable in value to the principal civil service pension scheme, will be established. The group stands behind its subsidiaries. The Department will meet the costs of redundancies, should they occur, in the five years after sale on an agreed basis up to a specified limit.

§ Mr. Henderson
To ask the Secretary of State for the Environment what long-term commitment has been made by Serco, in respect of long-term commitment to maintain a separate Property Services Agency building management organisation based in Scotland.

§ Mr. Baldry
Serco's objective in acquiring BM Scotland is to expand its business based in Scotland as a separate Scottish company.

§ Mr. Henderson
To ask the Secretary of State for the Environment whaat estimate Serco has given of the number of jobs that may be lost in PSA Building Management Scotland as a result of the proposed sale of the organisation.

§ Mr. Baldry
Serco does not expect significant jobs loss as a result of the proposed sale. Future jobs for BM staff will of course depend on the ability of the business to compete successfully for contracts as they are re-tendered.

§ Mr. Henderson
To ask the Secretary of State for the Environment whether the purchasers of the PSA Building Management business will be required to continue to provide a design capacity.

§ Mr. Baldry
The PSA Building Management businesses each have a range of contracts which require a design input. The purchaser will take over the obligation to service those contracts.
416W

§ Mr. Henderson
To ask the Secretary of State for the Environment if he will estimate the number of employees of the PSA Building Management Scotland who would need to opt to transfer to the purchasing company to enable the contract to be completed.

§ Mr. Baldry
I hope that a very large proportion of staff will transfer with the business on sale, but the sale does not need a particular number to choose to transfer for the sale to proceed to completion.

§ Mr. Henderson
To ask the Secretary of State for the Environment if he will indicate the purchase price offered for PSA Building Management Scotland by the management buy-out.

§ Mr. Baldry
No. Such information is commercially confidential.