Decision soon on Scottish Bus Group merger with Ulsterbus
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"NE Scottish Bus Group and orthern Ireland's recently formed Ulsterbus Ltd. will form one company soon—if merger talks are successful. The decision should be known "within a few weeks".
Chairman of the Scottish Bus Group, Mr. William Little, indicated this last week before leaving for talks in Belfast.
He said there would be "a financial arrangement" between the companies, but declined to describe it. "This is not a takeover by us", he insisted. "I would liken it to an industrial merger. I also believe it is an arrangement which would mutually benefit the two companies."
Ulsterbus Ltd. was formed as part of the break-up of Northern Ireland's established nationalized transport services.
The ultimate company will be "rather like the Scottish Bus Group", said Mr. Little. "So we think that we could operate successfully together."
He said there was a possibility that one director would sit on both boards and that staff would be seconded for training purposes.
"I think that the Scottish Bus Group would certainly benefit from such an arrangement. It is difficult to specify exactly how we could benefit, but any company which has more size behind it, provided it is not just a hotch-potch, and is under reasonable control, can gain certain advantages.
"By inter working, we can have the advantage of size in all departments—sharing of costs, more staff and more ideas."
Mr. Little said he expected a statement soon from Northern Ireland's Ministry of Development. He said he had been negotiating directly with Mr. Werner Huebeck, the managing director of Ulsterbus, but that the statement would have to come from the Irish Government because the bus company was still State-controlled—until April 17.
Ulsterbus is running nearly 1,200 vehicles with an annual turnover of £4.5m. and has been under State ownership since 1935. It is one of the largest passenger transport companies in Ulster.
The Scottish Bus Group operates 5,000 buses in the whole of Scotland, excluding municipalities. It has 20,000 employees, and carries more than 700m. passengers a year.
The Group is currently engaged in negotiations with Glasgow Corporation for control of the city's municipal service and its £14m. assets. It has asked the Corporation to lease the whole of the municipal transport undertaking of buses, trolleybuses and underground trains for 30 years in exchange for taking over the whole of the current liabilities of film. and payment of a yearly rental to the Corporation.
The scheme has run into trouble from trade union leaders who fear that it might have an adverse effect on wages and conditions.