Brian Souter

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Sir Brian Souter
Born (1954-05-05) 5 May 1954 (age 59)
Perth, Scotland
Residence Perth, Scotland
Occupation Chairman, Stagecoach Group
Years active 1980–present
Net worth £400 million (2010)[1][2]
Spouse(s) Betty Souter
Children 4
Website
Brian Souter Official Website

Sir Brian Souter (born 5 May 1954 in Perth, Scotland) is a Scottish businessman. Along with his sister, Ann Gloag, he founded the Stagecoach Group which started running bus services and expanded throughout the United Kingdom and internationally, also moving into rail franchises.

Souter has also been politically active in Scotland, having donated large sums to the Scottish National Party. When the Scottish Government proposed to repeal Section 28 of the Local Government Act, which prevented local authorities from "promoting homosexuality", Souter started the Keep the Clause campaign to oppose their plans, spending one million pounds of his own money to organise a private referendum across Scotland. This campaign, and other controversial statements, have led opponents to accuse him of homophobia.

Souter has also made large charitable donations through his own Christian-based charity trust. In 2011, he was awarded a Knighthood for services to transport and the voluntary sector,[3] though the honour was criticised by Scottish Labour politicians and by Gay Rights campaigners.[4]

Souter lives in Perth with his wife and four children, and is a prominent member of Perth's Trinity Church.[5][6]

Early life and career[edit source | edit]

Souter was educated at Perth Academy, University of Abertay[7] and the University of Strathclyde[citation needed] before he completed training as a Chartered Accountant with Arthur Andersen.

Stagecoach[edit source | edit]

Using his father's redundancy money, and working with his sister Ann Gloag and his brother-in-law Robin Gloag, Souter established the Stagecoach Group in 1980, running buses from Dundee to London.[5] Expansion continued and in the early 1990s, Stagecoach acquired National Bus Company operations in Cumberland, Hampshire, East Midlands, Ribble, Southdown and the United Counties. Stagecoach bought further bus operations in Scotland, Newcastle and London, with Manchester being added a few years later.[8] In 1993, Stagecoach was valued at £134 million and was floated on the London Stock Exchange in order to access more capital for new opportunities for buses and trains for overseas expansion. The company went on to diversify with trains and trams and expanded overseas — especially into the United States and Canada.

In 2009, Souter received a £1.6m bonus. Stating "it was felt that in the present economic climate it would not be right for any individual to pocket a bonus package of £1.6million", he accepted the bonus, donating £900,000 to his own charity, the Souter Charitable Trust, which assists humanitarian projects in the UK and overseas that adhere to the teachings of Christianity. Most of the remainder was given to the staff pension fund.[9][10]

In August 2012, it was announced that Brian Souter will become Chairman of Stagecoach Group on 1 May 2013. Stagecoach finance director Martin Griffiths will replace Souter as CEO.[11]

Souter Holdings and other investments[edit source | edit]

Souter Holdings Ltd is Souter's New Zealand investment company, owning commuter ferry operator Fullers Ferries and the bus company Howick & Eastern, both operating in Auckland, and 74% of Wellington bus operator Mana Coach Services.[12]

In total, Souter has more than 200 private investments which are managed by his company, Souter Investments. They include sizeable stakes in Sunseeker, the luxury yacht company, insurance specialists eSure and Go Compare, Alexander Dennis, Britain’s biggest bus and coach manufacturer and Argent, the world renowned producer of biodiesel. In October 2010, Souter Investments reported that the value of its portfolio had risen by 41% over the last three years to £400 million.

Souter Charitable Trust[edit source | edit]

In 1992, Souter and his wife set up the Souter Charitable Trust which assists humanitarian projects in the UK and overseas that adhere to the teachings of Christianity. According to its official website, the Trust has awarded over 2,700 grants worth more than £20 million.[13]

Controversies[edit source | edit]

Business practices[edit source | edit]

Following the deregulation of bus services in the United Kingdom, Stagecoach bought a number of the newly emerged small bus companies and ran free or low fare buses to put local rivals out of business.[5] One of the most controversial examples was in Darlington where Stagecoach subsidiary Busways offered bounties to recruit drivers away from the existing bus service and offered free buses to deter the rival preferred bidder from taking over the existing bus service. This was "predatory, deplorable and against the public interest" according to findings from The Monopolies and Mergers Commission.[14][15]

Controversial comment[edit source | edit]

In 1998, Souter described British northerners (who make up a considerable proportion of his customers) as "the beer-drinking, chip-eating, council house-dwelling, old Labour-voting masses." [16][17][18]

Section 28[edit source | edit]

In 2000 Souter was the prominent leader of the Keep the Clause campaign, which forbade local authorities to "intentionally promote homosexuality". In Scotland Clause 28 was known as clause 2A and Souter sponsored the first privately funded postal referendum to take place across Scotland to gauge public opinion.

A total of 3,970,712 ballot papers were posted out and 31.8% valid votes were returned (a "turn out" rate lower than any national election in Scottish history). The results showed that 86.8% of returned ballots were in favour of keeping Clause 28 and only 13.2% in favour of repeal.[19]

Souter pointed out that the number of people who voted to keep the clause exceeded the number of votes cast for any single political party in Scotland at any election over the preceding ten years, avoiding the obvious point that Scottish voters usually choose from four main parties not two options. The campaign was ultimately unsuccessful, with the poll criticised as an exercise in chequebook democracy, and ultimately not representative of public opinion.

Souter's campaign group approached the Electoral Reform Society to organise the ballot through its ballot services subsidiary. The society refused the request as it believed the poll "would not be a legitimate democratic exercise to ask people to give an opinion on the repeal of Section 28 without knowing the detail of what would replace it".[20] Many groups hostile to Souter's stance had called for a public boycott of the poll, and accordingly claimed that as only a minority returned ballot papers this was a defeat for Souter and his supporters. Mainstream politicians, including the Scottish National Party (which Souter has supported) largely ignored his private poll and disputed whether the result was a true reflection of public opinion, with the Scottish Executive stating that the public had been fed a diet of "misinformation and lies" by Souter's campaign group.[19] The then Communities Minister, Wendy Alexander MSP, criticised the poll stating "I think what is significant about today's ballot is that two out of three voters rejected, or binned or simply ignored this glorified opinion poll."[21] Gay rights campaigner, Peter Tatchell, stated that "Brian Souter’s support for Section 28 is the moral equivalent of the business-funded campaign to maintain racial segregation in the Deep South of the USA in the 1950s." Tatchell stated that Souter's campaign was "hateful" and that it is clear that Souter was using his vast fortune to try to keep a cruel and "bigoted law" intact.[22]

Donations to the SNP[edit source | edit]

Souter is a major financial supporter of the Scottish National Party (SNP). In March 2007, he donated £500,000 to the SNP, citing an imbalance of funding within Scottish politics.[23] Souter stated that it was his intention to redress an imbalance in funding, saying that "as long as I can remember, the case for the union has been hugely financed by cash from London, while the case for independence has lacked resources. I hope my donation will help redress this imbalance".[24] Following the donation, SNP leader Alex Salmond was criticised for "pandering to homophobia" by accepting Souter's donation[24] - particularly as the party had just opposed the right for gay couples to be given equal treatment by Catholic adoption agencies, and had also snubbed a gay rights debate in January 2007.[24] However, Salmond merely thanked Souter for his support, calling him "one of the outstanding entrepreneurs of his generation".[24] One month later, in April 2007, the SNP's commitment (made at the party's 2006 conference) to re-regulate the bus network was dropped from the 2007 manifesto, although the SNP denied any direct link.[25]

In February 2011 Souter again pledged financial support for the SNP promising to match every pound they raised with a donation of up to £500,000. Announcing his support he said Alex Salmond and the SNP deserved a second term in office.[26][27] The SNP won a resounding victory in the election with Alex Salmond being returned unopposed as First Minister.[28]

Honours and awards[edit source | edit]

In June 2010, Souter was given a Special Career Service Award at the "Talent In Mobility" Awards, part of the European Mobility Exhibition held in Paris for the public transport industry.[29] In October 2010 he was awarded the Ernst & Young UK Master Entrepreneur of the Year.[30]

Souter was knighted in the 2011 Birthday Honours for services to transport and the voluntary sector.[31][32] This decision proved to be controversial, and was criticised by Scottish Labour MP Cathy Jamieson who suggested a link between Souter's knighthood and the large amounts of money he has donated to the Scottish National Party. In a public statement, Jamieson said: "The First Minister and his party must look seriously at the relationship they have developed with wealthy individuals handing them large sums of cash. The public will rightly be asking what’s next on Mr Souter’s shopping list?"[4] First Minister Alex Salmond denied any wrongdoing in the matter and referred himself for investigation after calls for a probe by Scottish MP Jim Sheridan. An independent report, conducted by Lord Fraser of Carmyllie, cleared Salmond of any wrongdoing and asserted that "There appears to me to have been no breach of the ministerial code by Alex Salmond as First Minister and he should be wholly exonerated of any breach."[33] Souter's knighthood was also criticised by Gay Rights campaigners, who felt that the honour was insulting towards the gay community and was effectively rewarding homophobia given Souter's past campaigning. Their condemnation sparked a petition to have Souter's knighthood withdrawn which has gained over 6,000 signatures to date.[34][35][36]

On 18 April 2012, Souter was inducted into the British Travel and Hospitality Industry Hall of Fame. He is the first public transport entrepreneur to receive the honour.[37]

External links[edit source | edit]

References[edit source | edit]

  1. ^ "Brian Souter reveals investment wealth". Perthshire Advertiser. Retrieved 2012-02-05. 
  2. ^ Grierson, Jamie (2010-10-26). "Brian Souter’s fortune soars to Ł400m | The Sun |Home Scotland|Scottish News". The Sun. Retrieved 2012-02-05. 
  3. ^ "BBC News - Brian Souter knighted in Queen's birthday honours". bbc.co.uk. 2011-06-11. Retrieved 2012-02-05. 
  4. ^ a b HELEN McARDLE (2011-08-07). "Row grows over honour for Sir Brian". Herald Scotland. Retrieved 2012-02-05. 
  5. ^ a b c "UK | Brian Souter: Stagecoach's straightman". BBC News. 2000-01-21. Retrieved 2012-02-05. 
  6. ^ "Trinity Church Of The Nazarene". trinitychurchperth.org. Retrieved 2012-02-05. 
  7. ^ "Abertay University, Dundee - A-Z Unis & Colleges - Getting Into University". The Independent. 2011-05-01. Retrieved 2012-02-05. 
  8. ^ "Bus History | Magicbus | National Bus". Brian Souter. Retrieved 2012-02-05. 
  9. ^ "Stagecoach boss gives his £1.6m bonus to staff and charity". The Daily Record. Retrieved 2012-02-05. 
  10. ^ "Faith in Community Scotland". Faith in Community Scotland. Retrieved 2012-02-05. 
  11. ^ "Stagecoach CEO Brian Souter to become chairman next year". Reuters.com. Retrieved 2012-08-22. 
  12. ^ Radio New Zealand Morning Report, 7 April 2009
  13. ^ "Brian Souter | Souter Charitable Trust | About". Souter Charitable Trust. Retrieved 2012-02-05. 
  14. ^ Glenda Cooper (1995-12-24). "Stagecoach set record of shame ful record of shame - Home News - UK". The Independent. Retrieved 2012-02-05. 
  15. ^ "The supply of bus services in the north-east of England". Competition Commission. Retrieved 2012-02-05. 
  16. ^ From the archive (1998-01-05). "A wrong turning Stagecoach boss's comments are unwise". Herald Scotland. Retrieved 2012-02-05. 
  17. ^ "Suffering from foot-in-mouth | Business | The Observer". Observer.guardian.co.uk. Retrieved 2012-02-05. 
  18. ^ Margaret Stead. "Weblogs as a Career Tool - Career Coach Newsletter October 2003 from". Careersnet.com. Retrieved 2012-02-05. 
  19. ^ a b "SCOTLAND | Poll supports S28 retention". BBC News. 2000-05-30. Retrieved 2012-02-05. 
  20. ^ "SCOTLAND | Souter poll hits major setback". BBC News. 2000-03-31. Retrieved 2012-02-05. 
  21. ^ "Keep the Clause: the legacy - News - Scotsman.com". Scotlandonsunday.scotsman.com. 2005-03-06. Retrieved 2012-02-05. 
  22. ^ "Think Again, Brian Souter". Peter Tatchell. 2000-01-16. Retrieved 2012-02-05. 
  23. ^ "UK | Scotland | Stagecoach tycoon donates to SNP". BBC News. 2007-03-17. Retrieved 2012-02-05. 
  24. ^ a b c d Paul Hutcheon (2007-03-17). "Souter jumps back on SNP bandwagon with £1/2 m donation". Herald Scotland. Retrieved 2012-02-05. 
  25. ^ "SNP under attack after bus U-turn - Edinburgh, East & Fife - Scotsman.com". Business.scotsman.com. 2007-04-23. Retrieved 2012-02-05. 
  26. ^ "£500,000 war chest for Alex Salmond - News". Scotsman.com. 2011-02-12. Retrieved 2012-02-05. 
  27. ^ "Brian Souter Announces His Donation To The SNP". Briansouter.com. 2011-02-13. Retrieved 2012-02-05. 
  28. ^ Black, Andrew (2011-05-18). "BBC News - SNP leader Alex Salmond re-elected as first minister". bbc.co.uk. Retrieved 2012-02-05. 
  29. ^ "Transports Publics 2012 - ‘Talent in mobility’ awards". Transportspublics-expo.com. Retrieved 2012-02-05. 
  30. ^ Tim Sharp, City Editor (2010-06-24). "Stagecoach boss warns against cutting OAP free travel". Herald Scotland. Retrieved 2012-02-05. 
  31. ^ The London Gazette: (Supplement) no. 59808. p. 2. 11 June 2011.
  32. ^ "Queen's birthday honours list: Knights | UK news". The Guardian. 2011-06-11. Retrieved 2012-02-05. 
  33. ^ "Alex Salmond cleared of any wrong-doing in knighthood nomination for Stagecoach tycoon Brian Souter". The Daily Record. 2011-11-28. Retrieved 2012-02-05. 
  34. ^ Thornton, Paul (2011-06-13). "Gay storm over Souter knighthood | The Sun |Home Scotland|Scottish News". thescottishsun.co.uk. Retrieved 2012-02-05. 
  35. ^ Geen, Jessica (2011-06-13). "Knighthood for Section 28 backer Brian Souter". PinkNews.co.uk. Retrieved 2012-02-05. 
  36. ^ iPetitions (Withdraw Brian Souter's knighthood)
  37. ^ "Sir Brian Souter enters British Travel Industry Hall of Fame". stagecoach.com. 2012-04-18. Retrieved 2012-04-19. 
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