NBC predicts hold-ups
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DEREGULATION will be postponed for nine months, and National Bus Company privatisation will not happen until later, NBC's outgoing chairman Lord Shepherd said earlier this week.
He was speaking before NBC gave evidence to the Commons transport committee, and hinted that the Government would have difficulty in meeting the April 1986 deadline for deregulation.
According to NBC, the seven grouping privatisation plan put to Transport Secretary Nicholas Ridley in the autumn (CM, October 20) has not been rejected and is one of the options still being considered.
Mr Ridley has revealed the steps which he has asked the NBC board to take in preparing for deregulation and privatisation.
It should consider how the local operating companies should be restructured to compete fairly after deregulation, and is to report to him on options for privatisation. Its the prime objective to achieve deregulation and fair competition.
He wants NBC to restructure its local companies so that they can compete fairly from the first day of deregulation. Although they will not have been privatised by then, they must compete fairly and effectively with other operators without cross-subsidy within NBC.
He has asked the board to consider whether the policy of breaking companies into such smaller units as those at Midland Red and Western National should be extended to other large operating subsidiaries.
Managers and employees within the operating companies should be offered opportunities to acquire the whole or at least a stake in the undertakings for which they work, and the Government wants to maximise the overall proceeds to the Exchequer.
Some companies do not favour sub-division into smaller units.