OWERS to introduce private capital into the National Bus Cornany
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are, as anticipated, included in the Transport Bill, which was ublished last week.
The Bill seeks to permit NBC to all any shares or other securies which it holds either in a Jbsidiary, or to sell the whole r any part of the undertaking of ny of its subsidiaries or any roperty, rights, or liabilities wned by it.
Following the so-far Jccessful efforts to sell the ational Freight Company to an mployee consortium, the Govrnment has included powers to stablish an employee shares 7:heme for employees, former mployees, and their families to uy shares in the company.
In all cases, sales will not be ermitted until Transport Secreiry David Howell approves.
The Bill includes provision for j NBC to continue to provide common services for any of its subsidiaries after their disposal or part-disposal to outside interests, and also for the protection of existing pension rights where part of the company is sold to other hands.
According to the Government, these moves will bring additional funds into the company, and so reduce its external financing requirements, especially its call upon the National Loans Fund, but it cannot quantify the savings at present.
Commenting on the Bill, Mr Howell said: "We believe that there is scope for involving the private sector, particularly in NBC's coach operations — including the successful National Express network of inter-city services — and in the improvement of passenger facilities.
"Access to private capital will mean a better service for the travelling public, by allowing the NBC to develop and expand these parts of its business outside the constraints of the public sector," he added.
Mr Howell went on to say that detailed schemes for privatisation are being discussed with NBC at present, and NBC chairman Lord Shepherd said that he would welcome the injection of private capital if it will help it improve its less than high standard of passenger terminals.
But he went on to warn that the integrated nature of NBC will impose constraints on the amount of privatisation which can take place without damaging the company, and said: "The board of NBC will pay the closest of attention to this factor when assessing whether or not any proposals which might emerge for the involvement of private capital, would make a positive contribution to the group, and result in better services to the travelling public."