asked the Secretary of State for Transport what conditions are being placed by British Railways on prospective purchasers of the railway hotels.

I am glad to say that the Railways Board is pressing forward to complete the agreed policy of transferring its hotels to the private sector, where what has been a loss-making business for BR will have a better opportunity to prosper. Six hotels have so far been privatised, and conditions of sale are a matter for normal commercial negotiation.

Will my hon. Friend confirm that prospective purchasers are being asked to accept current closed shop agreements with the National Union of Railwaymen? Does he not agree that that is an inappropriate union for hotels?

As my hon. Friend will know, the post-entry closed shop is a matter to be negotiated between the unions and the prospective purchasers of the hotels. While British Rail must ensure that the proper arrangements are made for its employees, it is not possible for British Rail to force conditions on a buyer in a free market, otherwise the buyer may well go elsewhere.

What conditions have been imposed to protect the security, conditions of service, pensions and so on of the staff presently employed in these hotels?

If the hon. Gentleman reflects on the answer that I have just given, he will see that proper provision has been made in that respect.

Do not any conditions, whether imposed by the British Railways Board or the unions, reduce the price that the purchaser will pay? In consequence, will not the taxpayer in the end be expected to increase his subsidy to make good that deficiency? Will the Minister ensure that neither British Rail nor the union is allowed to impose conditions that will reduce the attractiveness of the asset that is being sold?

When my hon. Friend looks at the facts in each case, I am sure he will appreciate that the sale price has not been adversely affected in the way that he has suggested. That is particularly so with regard to the sale of a hotel at Derby, which had been a bad loss-maker and where the factors mentioned by my hon. Friend were particularly relevant.