King scraps Lloyd's testing
Page 5
If you've noticed an error in this article please click here to report it so we can fix it.
NEW TRANSPORT SECRETARY Tom King has ditched the long-standing controversial plans to privatise the heavy goods vehicles testing stations and hand them over to Lloyd's Register of Shipping, writes our Parliamentary correspondent.
Mr King stepped in after it became crystal clear that privatisation would involve higher increases in the test fee than could be justified.
His decision to scrap the fouryear-old proposals of former Transport Secretary Norman Fowler was greeted by a "we told you so" reaction from Labour MPs and relief from Tory transport experts who, like the transport industry, had been opposed to the whole idea.
The cost of setting up a new Lloyd's Register Vehicle Testing Authority would have landed the Government with one-off bills of well over £15m in the first year in pension and compensation costs, as well as Lloyd's own start-up costs.
In addition, Mr King told MPs, "The estimated operating cost in the first year would be significantly above those currently projected for the Department for the same period.
"Even allowing for the longer term benefits of privatisation in providing a more efficent basic service and possibly extra nonstatutory services, I have concluded that the costs involved make it unwise to proceed."
Mr King said he now planned to conduct an "urgent and comprehensive" review of the vehicle inspection division to improve its efficiency and standards of service.