HC Deb 21 June 1995 vol 262 cc316-7W
Mr. Macdonald

To ask the Secretary of State for Scotland if he will name the consultants who are to conduct the review of private sector involvement in Highland and Islands Airports Ltd.; what is the cost of the exercise; what are their terms of reference; when the consultants are due to report; and if he will undertake to publish the final report. [29315]

Lord James Douglas-Hamilton

Proposals by a number of firms of consultants have been received and are currently being assessed. The successful candidate will be selected by the end of June and will report by mid-October. The study will cost around £60,000. No decision has been taken yet on whether the final report will be published.

The aim of the study will be to advise my right hon. Friend on how the private sector might be involved in all or part of the business of Highlands and Islands Airports Ltd., with the objective of ensuring the most cost-effective delivery of high-quality services to users, both passengers and air transport operators.

The terms of reference for the study make it clear that the airports are seen as essential for the social and economic well-being of the highlands and islands of Scotland and that it is essential that any arrangements should secure the long-term future of those services. The consultants will be asked to advise on a range of options, including: the sale of all or part of the business; franchising all or part of the business to the private sector; and other options for involving private sector finance and/or management skills.

Those options will be considered against a base case of no change in the present arrangements. No decision has been taken at this stage to privatise HIAL of any part of it.

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