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NBC going private
THE NATIONAL Bus Company has moved closer to privatisation. Last week, the Transport Bill received the Royal Assent, and became the 1982 Transport Act, complete with powers to introduce private capital to NBC. And, in addition, a separate property division has been created at NBC, reports ALAN MILLAR.
The Act gives the Government powers to introduce private capital to parts of NBC, and although the Government intends to confine these to the coach and property activities, the powers extend to all subsidiaries.
In spite of NBC cries of concern, the Government is pressing ahead with its aim of introducing private capital to the National Express and National Holiday's coaching businesses. This has worried NBC executives who find it difficult to separate all costs involved with coaching, as the two enterprises are largely marketing names for services provided by stage carriage companies. The remaining six property board members are NBC deputy chief executive George Carruthers, NBC finance director H. W. Taylor, and four members of the property and finance industries.
The 1982 Act gives NBC powers to sell shares or other securities in its subsidiaries and to transfer property, rights and liabilities to subsidiaries for the purpose of sale. It will be possible for employees to buy shares in the company, and there are also reserve powers for the Transport Secretary to ensure that his policy is carried through.