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LEASING DEAL FOR STRATHCLYDE REFUSED BECAUSE OF REORGANISATION

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Strathclyde RC has failed in its latest attempt to agree a£36m leasing deal to finance 21 trains, the Scotsman rep...
Strathclyde RC has failed in its latest attempt to agree a £36m leasing deal to finance 21 trains, the Scotsman reports (p9).

Finance company Lombard North Central refuses to accept a guarantee from Strathclyde because the council will disappear in 1996 under the local government reorganisation plans. The company is insisting on a government guarantee.

Strathclyde RC's roads and transport chairman Malcolm Waugh yesterday discussed the problem with Scottish Office transport minister Lord James Douglas Hamilton and Roger Freeman, public transport minister.

The paper reports Mr Waugh as saying that neither minister appreciated the legal problems caused by the local government restructuring.

The Scottish Office says that the regional council's obligations, including the passenger transport executive, will be taken over by the new councils. Lombard, however, claims the new councils could back out of the leasing agreement.
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