COUNCIL leaders are today meeting with union representatives to discuss the future of the local authority-owned bus company.

Chester City Council leader Paul Roberts (Lib Dem) and deputy leader John Price (Labour) are meeting with representatives of the Transport & General Workers Union to talk about their proposal to sell ChesterBus.

The T&G, which says it is 'dumbfounded' by the decision, wants to know its members' jobs are safe.

Asked if he could offer reassurances to the workforce, Cllr Roberts told The Chronicle: 'Certainly in general terms - I don't want to anticipate what happens at the meeting.

'We have always said, and continue to say, a key concern is the workforce and we will continue to do whatever possible to protect their rights.'

The firm, which has 78 buses and 125 staff, made a loss of £62,174 in 2004/05 after depreciation, although it continues to make an operating profit.

Cllr Roberts refused to confirm or deny persistent rumours the company faces a financial blackhole saying the information was 'commercially sensitive'.

The council leader said 'a number' of companies had expressed an interest in the possibility of buying ChesterBus.

The union claims Chester City Council would have an ongoing liability to fund employees' pensions paid for either as a lump sum from the company sale or from council tax over years to come.

A new company would operate on a purely commercial basis and axe most uneconomical services currently run by ChesterBus.

The letter ended: ' There may be redundancies, these employees could be voters in your ward.'