HC Deb 17 February 1994 vol 237 cc907-9W
Mr. Simpson

To ask the Secretary of State for the Home Department (1) what plans the communications business of the Home Office has to close the Ruddington head office; what are the consequences to be for the staff in the event of such closure; and if he will make a statement;

(2) if he expects to initiate pre-redundancy measures as detailed in the model redundancy agreement and if necessary to offer staff the option of secondment; and if he will make a statement;

(3) if he will ensure that any proposed purchaser intends to respect existing terms and conditions of employment of the communicatioins business of the Home Office employees and that employees' severance terms shall not be changed without consent and that there can be no unilateral change to these terms;

(4) what conclusion he has reached on the representations made by unions at the communications business of the Home Office concerning a guarantee of redundancy money in the event that any new owner of DTELS becomes insolvent; and if he will make a statement;

(5) what is the status of the proposed sale of the communications business of the Home Office; who has managed the sale; what is the purchase consideration; and if he will make a statement;

(6) what proposals there are for the communications business of the Home Office to relocate staff presently operating at Ruddington head office to be relocated at the DTELS establishment at Stanton; and if he will make a statement;

(7) what indications he has received from any proposed purchaser of the communications business of the Home Office to maintain the recognition agreement with NUCPS, CPSA and IPMS unions; and if he will make a statement;

(8) what steps he has taken to ensure that the communications business of the Home Office shall retain its autonomy and that the privatisation process shall help to protect jobs; and if he will make a statement.

Mr. Charles Wardle

DTELS, formerly the Directorate of Telecommunications, is being privatised by means of a trade sale. Price Waterhouse is the financial adviser to the Department on the sale.

National Transcommunications Ltd. has been approved as preferred bidders for DTELS and negotiations to complete the sale are under way. The purchase consideration must be treated as commercial in confidence.

NTL is not in a position to set out in detail future staffing plans for the business. These will be finalised following completion of the sale. It has announced, though, that it intends to close DTELS's existing Ruddington head office within 12 months and to transfer operations o Winchester, with some staff relocating to the existing DTELS site at nearby Stanton. Opportunities may also arise at other NTL or DTELS locations.

We have no plans to initiate pre-redundancy measures under the model redundancy agreement or to second staff in response to NTL plans. The unions have been informed that the Government's normal clean break policy on privatisation will apply and that there will be no Government underwriting of any redundancy payment which are the responsibility of NTL.

NTL has undertaken that where redundancies are necessary it will respect the procedures currently in place. Staff terms and conditions, including severance rights, are protected on transfer by the Transfer of Undertakings (Protection of Employment) Regulations.

NTL has undertaken also to adhere to collective bargaining arrangements. Any proposal to change conditions of service would be discussed and agreement sought. It has confirmed that it would not seek to make unilateral changes.

The Broadcasting, Entertainment, Cinematograph and Theatre Union is the union recognised by NTL for collective bargaining. NTL recognises that existing recognition of civil service unions within DTELS transfers across. It aims though, to recognise BECTU as the sole union which represents all staff. It is understood that BECTU and the civil service unions are discussing how this might be achieved.

While it was not a requirement of sale, NTL has indicated that DTELS will operate as a separate entity within its organisation and that a separate operations structure will be maintained.

We think that DTELS is being sold to a purchaser which will meet its responsibilities to staff and customers. While NTL has indicated that there will be redundancies, privatisation ensures that for the majority there is the best prospect of long-term job security.