§ Mr. DunnTo ask the Secretary of State for Transport whether the British Railways Board will be issuing guidance to BR staff on management-employee buy-out bids for franchisers.
§ Mr. FreemanThe British Railways Board, with the strong support of the Government, is keen to help its managers and staff to mount successful bids for passenger franchises. BR therefore issued guidelines to its staff on 3 February about the steps it is taking to help managers and staff wishing to mount management or management-employee buy-outs for franchises, including the pro vision of financial assistance, and to minimise potential conflicts of interest which may arise.
Under these guidelines BR employees wishing to lead a possible MBO or MEBO are asked to inform senior management before talking to third parties, such as potential backers or joint venture partners. Having done so, and agreed to accept the guidelines, potential MBO-MEBO teams may talk to advisers, prospective partners and backers as soon as the arrangements for establishing the shadow franchise in question have been agreed by the board's restructuring committee and endorsed by the franchising director.
Two guiding principles are established for giving access or information to franchise bidders. These are evenhandedness—the need for information provided to one bidder to be provided to all—and the need to ensure that the release of information is properly controlled and recorded. The guidelines set out detailed arrangements governing the provision of information, covering in particular the franchising director's important role in ensuring that the arrangements for the franchise competitions he holds are fair.
The guidelines indicate that the board will decide whether it is necessary or expedient to provide substitutes or additional cover for the members of an MBO-MEBO team for the period in which they would be mounting a bid, in the light of discussion with the team, and after consulting the franchising director.
The guidelines also indicate that the board will decide in each case whether it wishes to bid for a franchise and its intention, should the board win a franchise, to transfer the franchise company to the private sector as soon as possible after the franchise award.
I welcome the issue of these guidelines, which make clear the British Railways Board's positive and helpful approach. I have placed a copy in the Library.
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§ Mr. KilfoyleTo ask the Secretary of State for Transport who are the members currently appointed to the British Railways Board.
§ Mr. FreemanThe following are currently appointed to the British Railways Board: Sir Bob Reid; finance director, Mr. J. J. Jerram; technical director, Dr. P. Watson, OBE; full-time member, Mr. D. E. Rayner CBE; part-time members: vice-chairmen, Messrs. C. J. Campbell CBE and R. B. Horton; other part-time members: Messrs. P. D. Allen, J. K. Aziz, K. H. M. Dixon, C. W. Jonas, A. J. Norman, E. F. Sanderson, Miss K. Kantor and Miss J. A. Page.