APPENDIX 7
PRIVATISATION OF THE ROLLING STOCK COMPANIES
(PAC 97-98/350)
Supplementary Memorandum from Department
Environment, Transport & the Regions
Neither the early illustrative calculation mentioned
in paragraphs 6 and 2.8 of the Comptroller and Auditor General's
report nor other value estimates were quoted in the advice to
Ministers in early 1994. The advice on early sale was based on
a report by Hambros delivered to British Rail and the Department
in April 1994. The report considered the pros and cons of an early
sale (covered in para 4 or 2.4-2.9 of the C&AG's report) and
identified several reasons why early sale would reduce proceeds,
but, on quantification, concluded that at that stage a valuation
of the ROSCOs would not produce meaningful results.
Department Environment, Transport & the Regions
19 June 1998
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