Steep Approach
16th Mar 2001, 16:31
I quote..... www.guardian.co.uk (http://www.guardian.co.uk)
Labour likely to call off Nats sale
Special report: transport in Britain
Keith Harper
Guardian
Friday March 16, 2001
The government was last night poised to abandon the controversial £500m sale of Britain's air traffic control service, Nats, until after the election.
A final ministerial decision has to be made next week, but unofficial sources at the Department of Transport said yesterday the government was running out of time if it planned a May 3 election. The sources said it was probably too late for the deal to go ahead.
New factors suggest the decision to delay the project has already been taken. The two organisations still left in the bidding are to re-submit their bids today, and the government has decided to wait until the end of March to hold a debate on the issue.
It is due to take place in the Lords, where Lord Macdonald, the transport minister, promised a three month moratorium on the sale last December. A debate has been provisionally fixed for March 29, several days after the prime minister would have informed the Queen of his intention to hold a May election.
Given this provisional timetable, it would be virtually impossible for the government to complete the sale by the start of April. It would face considerable criticism for trying to push such an unpopular measure under the wire.
The final bidders are management utilities company Serco, and the airlines group, consisting of firms such as BA, Virgin Atlantic and BMI British Midland.
Neither bidder is ideal. Serco faces safety questions from a consultative group appointed by Nats to advise it about the qualifications of bidders. The airline group, backed by the controllers as a last resort, faces considerable costs running Nats.
The government could also face a strike by controllers during the election campaign. Staff are upset by the planned sale, which they believe is unncessary and a threat to safety; a strike would be embarassing for Labour.
Nigel Griffiths, Labour MP for Edinburgh south, has created new disquiet among MPs by asking ministers how many staff will take early retirement if Serco is selected as Nats' strategic partner.
Sources from the controllers' union, IPMS, said yesterday that 20% of staff were threatening to leave the industry immediately if the Serco bid proved successful.
Labour likely to call off Nats sale
Special report: transport in Britain
Keith Harper
Guardian
Friday March 16, 2001
The government was last night poised to abandon the controversial £500m sale of Britain's air traffic control service, Nats, until after the election.
A final ministerial decision has to be made next week, but unofficial sources at the Department of Transport said yesterday the government was running out of time if it planned a May 3 election. The sources said it was probably too late for the deal to go ahead.
New factors suggest the decision to delay the project has already been taken. The two organisations still left in the bidding are to re-submit their bids today, and the government has decided to wait until the end of March to hold a debate on the issue.
It is due to take place in the Lords, where Lord Macdonald, the transport minister, promised a three month moratorium on the sale last December. A debate has been provisionally fixed for March 29, several days after the prime minister would have informed the Queen of his intention to hold a May election.
Given this provisional timetable, it would be virtually impossible for the government to complete the sale by the start of April. It would face considerable criticism for trying to push such an unpopular measure under the wire.
The final bidders are management utilities company Serco, and the airlines group, consisting of firms such as BA, Virgin Atlantic and BMI British Midland.
Neither bidder is ideal. Serco faces safety questions from a consultative group appointed by Nats to advise it about the qualifications of bidders. The airline group, backed by the controllers as a last resort, faces considerable costs running Nats.
The government could also face a strike by controllers during the election campaign. Staff are upset by the planned sale, which they believe is unncessary and a threat to safety; a strike would be embarassing for Labour.
Nigel Griffiths, Labour MP for Edinburgh south, has created new disquiet among MPs by asking ministers how many staff will take early retirement if Serco is selected as Nats' strategic partner.
Sources from the controllers' union, IPMS, said yesterday that 20% of staff were threatening to leave the industry immediately if the Serco bid proved successful.