HC Deb 03 March 1994 vol 238 cc825-6W
Mr. Simpson

To ask the Secretary of State for the Home Department (1) how many firms were invited to tender in the proposed sale of DTELS; how many bids were received; how many bids were still active when the Government made their decision about the preferred bidder; between which firms the final sales decision was made; what was the sale price; and what degree of debt write-off, deferred payment or preferential agreement was involved in the sale of DTELS;

(2) what are the public interest considerations which relate to the sale of DTELS to NTL;

(3) what contractual obligations were written into the sale of DTELS in respect of price stability in the telecommunications contracts for Britain's emergency services.

Mr. Howard

The privatisation of DTELS was advertised twice in theFinancial Times and copies of the information memorandum inviting indicative bids were issued to some 40 organisations. Seven bids were received by 22 October which were short-listed to three for submission of final bids by 17 December. Two final bids were taken forward from National Transcommunications Ltd. and from Pell Frischmann Consulting Engineers Ltd. The latter also offered the option of a joint bid with Serco Ltd.

The sale of DTELS was completed on 1 March. Full consideration of £6.6 million has been received in lump sum payment. In accordance with normal commercial practice, certain limited sums may become payable by the Department to the purchaser as a result of claims under the terms of the sale contract.

Brigade casualties, England and Wales 1988–92
Fatal1 Non-fatal casualties
Fire-related Non fire-related
Year Fire related Non fire-related Total Of which: serious injuries2 serious injuries2
1988 0 0 1,158 298 430
1989 1 1 1,462 325 394
1990 2 4 1,287 317 413
1991 2 2 1,020 302 620
1992 2 1 1,079 264 597
1 Includes road traffic accidents.
2 Resulting in absence of duty for at least one month.

Information on the number of injuries to police officers is not held centrally. The number of police officers

The objectives of the sale were to:

  • maximise sale proceeds consistent with preserving the best prospects for effective competition in the market for telecommunications support services for the emergency services;
  • obtain reassurances that the purchaser should have the capacity to meet transferred liabilities and obligations.

I am satisfied that sale to NTL meets those objectives.

The stability of contract prices for telecommunications support to the emergency services is determined by the market and by the nature of the agreements with the emergency services entered into. There is competition for these contracts.

Sir Ivan Lawrence

To ask the Secretary of State for the Home Department if he will make a statement on the sale of DTELS, formerly the Directorate of Telecommunications.

Mr. Howard

DTELS has been sold to National Transcommunications Ltd.—NTL. The sale was successfully completed on 1 March for a consideration of £6.6 million, subject to post-completion audit.

The objectives of the sale, which were announced on 14 July 1993 at column 495 were: to maximise sale proceeds consistent with preserving the best prospects for effective competition in the market for telecommunication support services for the emergency services; to obtain reassurance that the purchaser should have the capacity to meet transferred liabilities and obligations. I am satisfied that these objectives have been met.

I am confident that DTELS in NTL ownership and with increased commercial opportunities can continue to compete vigorously for telecommunications business i n support of the emergency services. This healthy competition will help ensure that the emergency services will get best value for their expenditure.