THE Government has refused to sanction a #28m management-employee
buy-out of Strathclyde Buses, a decision which provoked an angry
political reaction.
After almost two years of negotiation, council leaders and the
management-employee buy-out group had been confident of Scottish Office
blessing for the deal.
However, they were dismayed yesterday when they learned of the
Secretary of State's opposition.
In a letter to the council, Mr Ian Lang said he was not convinced the
offer was within the range of prices which might have been achieved had
an open market sale been pursued.
Councillor Malcolm Waugh, chairman of Strathclyde region's roads and
transportation committee, immediately requested an urgent meeting with
the Secretary of State.
In a letter to Mr Lang he says: ''I find your decision to refuse
permission for the offer to proceed extremely disappointing.''
Liberal Democrat leader Dr Christopher Mason was less circumspect,
claiming the Scottish Office had ''led Strathclyde up the garden path''.
He explained: ''Scottish Office officials gave us every reason to
suppose that the Secretary of State approved of the deal.
''I'm concerned that they should have apparently done a U-turn. I'm
concerned because we know that tremendous pressure has been exerted by
private companies to block this deal.''
Councillor Mason added: ''Mr Lang owes the public in Strathclyde a
very full explanation of his decision.''
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