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Private Finance Initiative
Mr. Andrew Smith: To ask the Secretary of State for Transport how much has been spent in public money in each year since 1993 on the tendering costs for design, build, finance and operate roads projects, broken down by (a) consultants' and (b) other costs. [5756]
Mr. Watts: I have asked the chief executive of the Highways Agency to write to the hon. Member.
Letter from Lawrie Haynes to Mr. Andrew Smith, dated 27 November 1996:
Please note that the 1996-97 figures are for spend from April to the end of October. The Department's costs are the combined estimated costs of staff wages, ERNIC, superannuation, travel and subsistence and accommodation costs for both the Department of Transport and for the Highways Agency.
The Secretary of State for Transport has asked me to reply to your recent question asking if he will list how much has been spent in public money in each year since 1993 on the tendering costs for Design, Build, Finance and Operate road projects, broken down by (a) consultants' and (b) other costs.
Because of the nature of the DBFO Programme, we are unable to disaggregate money spent on policy work from money spent on the tendering exercises. The figures given below represent the total costs to the Department and the Highways Agency.
Year Cost to the Department of DBFO advisors Department's internal costs 1993-94 £0 million Less than £0.1 million
1994-95 £3.3 million £1.4 million
1995-96 £5.2 million £2.5 million
1996-97 (to date) £5.0 million £1.1 million
National Bus Company Pension Trustees Ltd.
Mr. Hawkins: To ask the Secretary of State for Transport when he will reply to the National Bus Company Pension Trustees Ltd. on the matter of the recent determination by the pensions ombudsman. [6716]
Sir George Young: Following the determination by the pensions ombudsman on a complaint against the trustees of the Bus Employees Superannuation Trust--BEST--one of the pension funds of the former National Bus Company, the NBC pension trustees wrote to me on
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20 September asking for my proposals for repayment by my Department of the surplus of the fund paid to it in 1990 or, if the Department were not prepared to repay the surplus, for financial resources to enable the trustees to seek its recovery through the courts. The pensions ombudsman had ruled that the trustees should take all practicable steps to obtain the return of the moneys from the pension fund received by the Department of Transport on behalf of the National Bus Company. His determination was, however, directed to the trustees, and makes it clear that he has not carried out an investigation, or made a determination, with respect to the National Bus Company, or to my Department.
I have obtained legal advice on the points raised in the trustees' letter. I have considered carefully the background to the events with which the determination is concerned and the legal advice which I have now obtained. It is clear that those involved in the decisions at the time--the trustees, the National Bus Company and the Government--were satisfied, after taking legal and expert advice and after lengthy consideration of the options available, that the agreement reached in 1986 represented a reasonable and balanced solution to the difficult and contentious problem of how to secure, in advance of the company's privatisation, the accrued pension benefits of NBC employees. The arrangements provided the necessary protection for members' accrued benefits, and involved a Government undertaking that funds would be made available to cover any deficiency in the pension fund at wind-up, in return for a change in the fund's rules which provided for any surplus in the fund to be paid to the NBC. There was no certainty at that time whether the fund would be in deficit or surplus at the date of wind-up.
The amount at issue in this matter is substantial, and payment of such a sum would raise serious accounting issues. My Department has been advised that it has good grounds to put these matters before the courts. The Department's accounting officer would need to show conclusive reasons for making the payment and a determination as to its amount. I have therefore concluded that, if the trustees wish to pursue their claim, they must do so through the courts. If a legal action were commenced by the trustees, both parties could present all relevant evidence and legal arguments and the court could make a definitive ruling which would be binding both on the Department and on the trustees.
I have therefore today written to the NBC Pension Trustees Ltd. to say that, if it is minded to commence a legal action against my Department in the High Court, my Department would be prepared to meet its legal costs, given that it has no resources of its own to pursue litigation. I hope that any litigation could be carried out in as co-operative and speedy a manner as possible. A copy of my letter has been placed in the Library.
Finally, I should make it clear that the pensions ombudsman's determination and my announcement today address only the BEST pension fund which covered the majority of the NBC's employees. Management staff were covered by a separate pension fund, the National Bus pension fund. I understand that the NBPF is the subject of a separate complaint to the pensions ombudman which he is still considering.
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Mr. Lidington:
To ask the Secretary of State for Transport if he will list the names of purchasers, prices paid and dates of sale for those companies previously owned by British Rail which have been sold, pursuant to the Railways Act 1993. [6885]
Mr. Watts:
The table summarises sales of those companies previously owned by British Rail which have been sold pursuant to the Railways Act 1993. The table updates all sales announced previously. Where appropriate, gross proceeds are subject to post- completion adjustments.
| Company | Purchaser | Gross proceeds £ million | Sale date |
|---|---|---|---|
| BR Infrastructure Services Design Offices | |||
| DCU Birmingham Ltd. | Owen Williams Railways Ltd. (a subsidiary of Owen Williams Consulting Engineers) | 1.0 | 25 July 1995 |
| IDG Glasgow Ltd. | Scott Wilson Kirkpatrick (a subsidiary of SWK Holdings) | 0.6 | 18 August 1995 |
| Mainline Swindon Ltd. | Scott Wilson Kirkpatrick (a subsidiary of SWK Holdings) | 0.6 | 18 August 1995 |
| BPE Mechanical and Electrical Engineering Consultancy Ltd. | James Scott BPE (a subsidiary of AMEC Group plc) | *0.24 | 15 September 1995 |
| Civil Engineering Design Group, York Ltd. | British Steel plc | *2.9 | 15 September 1995 |
| CEDAC London | W S Atkins Ltd. | 3.6 | 15 December 1995 |
| Powertrack Engineering Co. Ltd | W S Atkins | 3.6 | 15 December 1995 |
| BR Infrastructure Service Companies | |||
| Scotland Track Renewals Co. Ltd. | Relayfast Ltd. (MBO funded by Hambro European Ventures Ltd.) | *10.7 | 8 February 1996 |
| Scotland Infrastructure Maintenance Co. Ltd. | TrackAction Ltd. (MBO) | *27.5 | 14 February 1996 |
| Central Track Renewals Co. Ltd. | Tarmac Construction Ltd. | *2.9 | 29 February 1996 |
| Western Infrastructure Maintenance Co. Ltd. | Amey Railways Ltd. (MBO) | *15 | 7 March 1996 (exchanged) 25 March 1996 (completed) |
| Eastern Track Renewals Co. Ltd. | Fastline Rail Services Ltd. | *11 | 15 March 1996 |
| Eastern Infrastructure Maintenance Co. Ltd. | Balfour Beatty Ltd. | (16)*29.7 | 2 April 1996 |
| South East Infrastructure Maintenance Co. Ltd | Broomco (919) Ltd. (an MBO/Balfour Beatty joint venture) | *20.3 | 2 April 1996 |
| Southern Track Renewals Co. Ltd. | Balfour Beatty Ltd. | *20.3 | 2 April 1996 |
| South West Infrastructure Maintenance Co. Ltd. | AMEC plc | *11 | 18 April 1996 |
| Central Infrastructure Maintenance Co. Ltd. | GT. Railway Maintenance Ltd. (a joint venture between GEC Alsthom Ltd. and Tarmac Construction Ltd.) | *18.8 | 7 March 1996 (exchanged) 19 April 1996 (completed) |
| Northern Infrastructure Maintenance Co. Ltd. | Jarvis plc | (17)*9 | 21 May 1996 (exchanged) 18 June 1996 (completed) |
| Northern Track Renewals Co. Ltd. | Fastline Group Ltd. | *4.6 | 23 May 1996 |
| Western Track Renewals Co. Ltd. | Relayfast Ltd. | *8.5 | 23 July 1996 |
| BR Maintenance Ltd. | |||
| Swindon Electronics Service Centre Ltd. | ABB Customer Support Services Ltd. | *19.46 | 13 April 1995 |
| Chart Leacon Rail Maintenance Ltd. | ABB Customer Support Services Ltd. | *19.46 | 5 June 1995 |
| Doncaster Rail Maintenance Ltd. | ABB Customer Support Services Ltd. | *19.46 | 5 June 1995 |
| Ilford Rail Maintenance Ltd. | ABB Customer Support Services Ltd. | *19.46 | 5 June 1995 |
| Glasgow Rail Maintenance Ltd. | Railcare (a joint venture of Babcock International Group plc and Siemens plc) | *5.7 | 6 June 1995 |
| Wolverton Rail Maintenance Ltd. | Railcare (a joint venture of Babcock International Group plc and Siemens plc) | 6 June 1995 | |
| Eastleigh Rail Maintenance Ltd. | Wessex Traincare Ltd. (MBO) | *7.15 | 7 June 1995 |
| BR Central Services | |||
| Meldon Quarry Ltd. | ECC Construction Materials Ltd. | 4.5 | February 1994 |
| Special Trains Unit | Waterman Railways | 1.25 | 31 March 1995 |
| Baileyfield Switch and Crossings Works | VAE Baileyfield Ltd., (a subsidiary of VAE Aktiengesellschaft of Vienna) | *1.13 | 7 July 1995 |
| Ditton Timber Treatment Works | PTG Holdings (a subsidiary of The Phoenix Timber Group plc) | *0.47 | 1 September 1995 |
| Quality and Safety Services Ltd. | Ingleby (805) Ltd. (MBO) | 0.32 | 10 November 1995 |
| Railways Occupational Health Ltd. | Occupational Health Care plc | 0.7 | 30 November 1995 |
| Signalling Control UK Ltd. | Westinghouse Brake and Signal Holdings Ltd. (a subsidiary of BTR) | 39.5 | 1 December 1995 |
| Interlogic Control Engineering Ltd. | ABB Daimler-Benz Transportation (Signal) Ltd. | 17.5 | 4 January 1996 |
| Castleton (Long Welded Rail and Track) Works | British Steel plc | 0.2 | 15 March 1996 |
| The engineering link Ltd. | MBO | 1.0 | 19 March 1996 |
| Interfleet Technology Ltd. | Broomco (909) Ltd. (MBO) | 0.69 | 22 March 1996 |
| College of Railway Technology Ltd. | Advicepart Ltd. (MBO) | 0.6 | 29 March 1996 |
| Network Train Engineering Services Ltd. | W S Atkins (Consultants) Ltd. | 0.8 | 1 April 1996 |
| BR Projects Ltd. | Addspice Ltd. (MBO) | 1.25 | 26 June 1996 |
| BR Freight and Parcels | |||
| Red Star Parcels Ltd. | MBO | (18)0 | 5 September 1995 |
| Rail express systems Ltd. | North and South Railways (consortium led by Wisconsin Central Ltd.) but now forms part of English, Welsh and Scottish Railway | 24.2 | 9 December 1995 |
| Transrail Freight Ltd. | North and South Railways (consortium led by Wisconsin Central Ltd.) but now forms part of English, Welsh and Scottish Railway | 225.15 | 24 February 1996 |
| Mainline Freight Ltd. | North and South Railways (consortium led by Wisconsin Central Ltd.) but now forms part of English, Welsh and Scottish Railway | 225.15 | 24 February 1996 |
| Loadhaul Ltd. | North and South Railways (consortium led by Wisconsin Central Ltd.) but now forms part of English, Welsh and Scottish Railway | 225.15 | 24 February 1996 |
| Freightliner (1995) Ltd. | MBO now known as Freightliners Ltd. | 5.39 | 25 May 1996 |
| Rolling Stock Leasing Companies | |||
| Porterbrook Leasing Co. Ltd. | Consortium led by management team with funds managed by Charterhouse Development Capital | *528 | 8 January 1996 |
| Angel Train Contracts Ltd. | GRS Holdings (including Prideaux and Associates, Babcock and Brown, and Nomura International) | *696 | 17 January 1996 |
| Eversholt Leasing Ltd. | Eversholt Holdings, a consortium led by Candover Partners Ltd. together with the management team, and including Electra Fleming Ltd. and the Royal Bank of Scotland | (19)*598 | 2 February 1996 |
| Other companies | |||
| OBS Services Ltd. | European Rail Catering Company Ltd. (MBO) | *11.15 | 3 October 1995 |
| British Rail Telecommunications plc | Racal Electronics plc | *132.75 | 21 December 1995 |
(16) This figure includes deferred amounts.
(17) This figure includes deferred amounts.
(18) £2.25 million was made available to the purchaser to reflect movements in the value of fixed assets, reduced gross profits and other changes from the basis of his final bid.
(19) Includes £80 million deferred consideration in respect of Networker vehicles.
Details of the sales marked with an "*" have been previously announced.
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