§ Mr. AllenTo ask the Chancellor of the Exchequer what are the reasons for differences in the way DTELS staff have been treated in respect of redundancy protection from the way PSA and Forward Catering staff were treated; and if he will make a statement.
§ Mr. DorrellThe Government's policy is that there should be a clean break between the public and private sectors when civil service activities are privatised. There is therefore a general presumption against offering Government guarantees of redundancy entitlements to staff transferred to the private sector. In certain circumstances, however, where because of market testing or because of the climate in the relevant sector of the economy the prospects for the business were uncertain, guarantees in the event of bankruptcy have been given. Each case has been considered on its merits in consultation with the representatives of the staff concerned.
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