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Brian Souter

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Sir
Brian Souter
2014 by Calum Cape
Born(1954-05-05)5 May 1954(age 70)
Perth,Scotland
OccupationBusinessman
Years active1980–present
TitleChairman,Stagecoach Group
SpouseBetty Souter
Children4
RelativesDame Ann Gloag(sister)
Websitebriansouter

Sir Brian Souter(born 5 May 1954) is a Scottish businessman. With his sister,Dame Ann Gloag,he founded theStagecoach Groupof bus and rail operators. He also founded the bus and coach operatorMegabus,thetrain operating companySouth West Trains,his investments company Souter Holdings Ltd, and the Souter Charitable Trust.

Souter has been politically active in Scotland, and supported theScottish National Party(SNP) financially. In 2000, when theScottish Executiveproposed to repealSection 2Aof the Local Government Act, which prevented local authorities from "promoting homosexuality", Souter started theKeep the Clause campaignto oppose their plans, spending £1 million of his own money to organise a private referendum across Scotland. This campaign and other controversial statements have led opponents to accuse him ofhomophobia.

In 2011, he wasknightedfor services to transport and the voluntary sector.[1]The honour was criticised byScottish Labour Partypoliticians and bygay rightscampaigners.

In October 2019, Souter announced the donation of 28% of the total shares in Souter Investments to charitable causes, with an estimated value of £109 million. This was described inThe Scotsmanas "what could be the largest charitable donation by a Scot since...Andrew Carnegie".This came after Souter's charitable trust had already spent over £98 million supporting" 13,000 worthwhile causes "over 13 years.[2]

According to theSunday Times Rich Listin 2020, Souter and his sisterAnn Gloagare worth £730 million, a decrease of £145 million from the previous year.[3]

Life and career

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Childhood and education

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Souter was born in the Scottish city ofPerth.His father was a bus driver and as a child Brian often travelled on bus routes with his father.[4] At school he developed an interest in economics and accounts, about which he later said, "Changing my timetable from maths to include economics and accounts was one of the best things I've ever done."[5]

On leaving school, he studied at the Dundee Institute of Technology (which becameAbertay Universityin 1994) to become a commerce teacher.[6]On completion he studied atStrathclyde UniversityinGlasgow,where he graduated with a CA Diploma in Accountancy and Economics. Following his graduation, Souter became aChartered AccountantatArthur Andersen& Co.

Stagecoach

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Stagecoach Manchesterbus

Using his father'sredundancymoney, with his sisterAnn Gloagand his brother-in-lawRobin Gloaghe established theStagecoach Groupin 1980, running buses fromDundeeto London.[7]Following thederegulation of bus services in Great Britain,expansion continued, and in the late 1980s Stagecoach acquiredNational Bus Companysubsidiaries in Cumberland andHampshire,and the East Midlands,Ribble,SouthdownandUnited Countiescompanies. Stagecoach also bought bus operations in Scotland,NewcastleandLondon,withManchesterbeing added a few years later.[8]In 1993, Stagecoach was valued at £134 million and was floated on theLondon Stock Exchangeto access capital for new opportunities for buses and trains overseas.

By the mid-1990s, Stagecoach developed its interests in Australia andNew Zealand.The company further expanded with the purchase ofCitybus,an operator of buses and ferries in Hong Kong, andCoach USA,the largest bus and coach operator in the US and Canada.[9][dubious–discuss]Souter became Chief Executive, and later sold off much of Coach USA.[citation needed]

Stagecoach then bought a number of the new small bus companies and ran free or low-fare buses to put local rivals out of business.[7]InDarlington,Stagecoach subsidiaryBuswaysoffered bounties to recruit drivers from the existing bus service and offered free buses to deter the rival preferred bidder from taking over that service. This practice was deemed as "predatory, deplorable and against the public interest" according to theMonopolies and Mergers Commission.[10][11]

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 donated £900,000 to his own charity, the Souter Charitable Trust, which assists humanitarian projects in the UK and overseas. Most of the remainder was given to the staff pension fund.[12][13]

In August 2012, it was announced that Souter would become chairman of Stagecoach Group on 1 May 2013, finance director Martin Griffiths replacing Souter as CEO.[14]It was announced in December 2019 that Souter would step down from his role as chairman at the end of the year, but remain on the board as a non-executive director.[15]

Rail operations

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South West TrainsClass 444

Shortly after Souter floated Stagecoach on the London Stock Exchange, he turned his attention to British railways. Initial experiments consisted of a Scotland to London service branded Stagecoach Rail with carriages attached to theCaledonian Sleeper.During theprivatisation of British Rail,Stagecoach bid successfully to operate theSouth West Trainsfranchise from 1996 followed by theIsland Line Trainslater the same year. Stagecoach successfully bid to retain both when retendered in 2001 and 2006, before they passed toSouth Western Railwayin 2017.[16]

In 1998, Stagecoach purchased a 49% shareholding inVirgin Rail Groupthat operated theCrossCountryandWest Coastfranchises.[17]In 2007, Stagecoach commenced operating theEast Midlands Trainsfranchise.[18]From April 2015 until June 2018,Virgin Trains East Coast,in which Stagecoach held a 90% share, operated theInterCity East Coastfranchise.[19]

Megabus

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In 2003, Souter added the bus and coach operatorMegabusto the group.[20]With its slogan "Low Cost Inter City Travel Serving Europe", it offered discounted travel across the UK and Europe. In 2012 it operated in 31 cities in the UK with a turnover in excess of £2 billion, with annual profits of over £250 million.[21]

In April 2013 Souter announced a new Megabus overnight sleeper service from Scotland to London. The sleeper coaches cost £5 million to build, and have 53 leather seats which can be converted into 42 bunk beds. Passengers receive aonesiefor sleeping in during the trip.[22]This service ended in May 2017, due to it being consistently loss-making, and the coaches are now only used on daytime services.[23]

Souter Investments

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Souter has more than 200 private investments, which are managed by his company, Souter Investments. It makes investments across a broad range of asset classes, with a primary focus on private equity and a portfolio of more than 25 direct unquoted investments. The total portfolio, excluding Stagecoach, has increased in value by 9% per annum over 12 years.

Highland Global Transport

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PolskiBusVan HoolAstr Omega TD927

Souter and his sisterAnn Gloagformed Highland Global Transport in 2012. It owns a portfolio of transport related investments valued at more than £600M[24]including:

InMotion Group

[edit]
ManaBusKiwi Bus BuildersbodiedVolvo B11R

Highland Global Transport has purchased and established a number of subsidiaries in New Zealand. In August 2015, these were brought together under the one umbrella as the InMotion Group with 340 buses and coaches and 17 ferries.[31][32][33]

ManaBus and Naked Bus ceased operation on 15 July 2018, with the bus fleets being sold toRitchies Transport.[34]Reesby Buses was also sold to Ritchies in February 2019.[35]Mana Coach Services and Howick & Eastern Buses were sold toTransdev Australasiain October and November 2019 respectively.[36][37][38]This leaves Fullers Group (Fullers360) as Souter's only subsidiary in New Zealand as of November 2019.[39]

Institute of Chartered Accountants of Scotland

[edit]

In April 2015, Souter was officially appointed vice president of theInstitute of Chartered Accountants of Scotland,alongside newly appointed president, Jim Pettigrew.[40]Souter, who qualified as a Chartered Accountant in 1984, was the sole nominee for the vice-president role. In May 2017 the organisation appointed him as its president.[41]

Political activity

[edit]

Section 28

[edit]
Section 28protester with aStagecoach Manchesterbus in July 2000

In 2000, theScottish Executiveproposed the abolition ofSection 28laws, which forbadelocal authoritiesfrom "intentionally promotinghomosexuality".Souter was a prominent leader of theKeep the Clause campaign,which sought to prevent its abolition. In Scotland, whereSection 28was known as clause 2A, Souter spent £1 million on the first privately funded postalreferendumacross Scotland to gauge public opinion. A spokesman for Souter stated "He is not in this for personal glory. He is fighting this battle because he is a father and committed Christian."[42]

3,970,712 ballot papers were posted out and 31.8% valid votes were returned, a turnout rate lower than any Scottish national election. 86.8% were in favour of keeping Clause 28, 13.2% in favour of repeal.[42]

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,[citation needed]although Scottish voters usually choose from four main parties, not two options. The campaign was ultimately unsuccessful.

Souter's campaign group approached theElectoral Reform Societyto 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".[43]Many groups hostile to Souter's stance had called for a public boycott of the poll, and accordingly claimed that as only a minority voted this was a defeat for Souter and his supporters. Mainstream politicians, including theScottish National Party(which Souter has supported) largely ignored his poll and disputed whether the result was a true reflection of public opinion, with theScottish Executivestating that the public had been fed a diet of "misinformation and lies" by Souter's campaign group.[42]The Communities Minister,Wendy AlexanderMSP, 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."[44]Gay rights campaignerPeter Tatchellstated 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 said that Souter's campaign was "hateful" and that it is clear that he was using his vast fortune to try to keep a cruel and "bigoted law" intact.[45]

Donations to SNP and other political parties

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Souter was a major financial supporter of theScottish National Party(SNP). In March 2007, he donated £500,000, citing an imbalance of funding within Scottish politics.[46]He stated that it was his intention to redress an imbalance in funding: "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".[47]Following the donation, SNP leaderAlex Salmondwas criticised for "pandering to homophobia" by accepting the donation.[47]Salmond thanked Souter for his support, calling him "one of the outstanding entrepreneurs of his generation".[47]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.[48]

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 Salmond and the SNP deserved a second term in office.[49][50]The SNP won a resounding victory in the election with Salmond being returned unopposed as First Minister.[51]

TheBBCreported in August 2014 that Souter had donated £1 million to the campaign forScottish independence.[52]Since Nicola Sturgeon became SNP leader in November 2014, Souter has made no further donation, but in December 2014 he gave £3,500 to theLewesbranch of theLiberal Democrats.[53][54]

In 2023, Souter aided Humza Yousaf’s government to organise a dinner between government and businesses.[55]Patrick Harvie,theMinister for Zero Carbon Buildings, Active Travel and Tenants’ Rightsstated "what has to be really, really clear is that not just my party, but the Scottish Government, does not share the values of Brian Souter.".[56]

Charitable work

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In 1992 Souter and his wife set up the Souter Charitable Trust, which assists humanitarian projects in the UK and overseas, especially, but not exclusively, those with a Christian emphasis.[57]Projects include the prevention ofmalariaand supplying daily meals to school children in Africa. The Trust has donated more than £98m to 13,000 worthwhile causes.

Groups funded annually by the trust includeTearfund,The Message Trust,Oasis Trustand Jam International.[58]

In April 2019, Souter's company Stagecoach Southeast was announced as thesponsorof the annualTurner Prizefor visual artists,[59]but the sponsorship was ended a few days later by mutual agreement after public criticism of Souter's involvement in the sponsorship.[60]

Honours and awards

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In 1989 Souter received an award from the Scottish Business Achievement Award Trust.[citation needed]

In 1997 he was granted anhonorary degreefromStrathclyde University.[61]

In 1998 he was awarded the Scottish Entrepreneur Award.[62]

In 1999 he received his second honorary degree, fromAbertay University.[63]

In 2004 he was honoured with the Businessman of the Year award at the Insider Elite Awards.[64]

In 2008 he was given a Special Recognition Award for services to the bus industry.[65]

In June 2010 he 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.[66]

In October 2010 he was awarded the Ernst & Young UK Master Entrepreneur of the Year.[67]

In 2011 he was presented with an outstanding achievement award at the 2011 Perthshire Chamber of Commerce Business Star Awards.[68]

On 18 April 2012 he was inducted into the British Travel and Hospitality Industry Hall of Fame, the first public transport entrepreneur to receive the honour.[69]

Knighthood

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Souter wasknightedin the2011 Birthday Honoursfor services to transport and the voluntary sector.[70][71]This proved controversial, and was criticised by Scottish Labour MPCathy Jamieson,who suggested a link between the knighthood and the large amounts of money he has donated to theScottish National Party.In a public statement, Jamieson said: "TheFirst Ministerand 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? "[72]Salmond denied any wrongdoing in the matter and referred himself for investigation after calls for a probe by Scottish MPJim Sheridan.An independent report, conducted byLord Fraser of Carmyllie,cleared Salmond of any wrongdoing, asserting 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."[73]

Souter's knighthood was also criticised by gay rights campaigners, who felt that the honour was insulting to the gay community and was effectively rewarding homophobia, given Souter's past campaigning. A petition to have the knighthood withdrawn received 5000 signatures by July 2011.[74]

Personal life

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In 1998, Souter describedEnglish Northerners(who make up a considerable proportion of his customers) as "the beer-drinking, chip-eating, council house-dwelling, old Labour-voting masses."[75][76][77]

Souter lives inPerth,Scotland with his wife and four children. He is a member of theChurch of the Nazarene,and attends Trinity Church of the Nazarene in Perth.[7]

References

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  1. ^"Brian Souter knighted in Queen's birthday honours".BBC News.11 June 2011.Retrieved5 February2012.
  2. ^"Sir Brian Souter makes massive £109m donation as charities experience 'perfect storm'".The Scotsman.22 October 2019.
  3. ^Times, The Sunday."Rich List 2020: profiles 101-199=, featuring Sir Paul McCartney and Joanne Rowling".The Times.ISSN0140-0460.Retrieved2 September2020.
  4. ^intervoewonRadio New Zealand,18 November 2014
  5. ^"Childhood".Briansouter.Retrieved25 October2013.
  6. ^"Abertay University, Dundee - A-Z Unis & Colleges - Getting Into University".The Independent.London. 1 May 2011. Archived fromthe originalon 27 October 2011.Retrieved5 February2012.
  7. ^abc"Brian Souter: Stagecoach's straightman".BBC News.21 January 2000.Retrieved5 February2012.
  8. ^"Bus History | Magicbus | National Bus".Brian Souter.Retrieved5 February2012.
  9. ^"Stagecoach pays pounds 1.21bn for largest US bus operator".The Independent.London. 15 June 1999.Retrieved28 October2013.
  10. ^Glenda Cooper (24 December 1995)."Stagecoach set record of shame ful record of shame - Home News - UK".The Independent.London.Retrieved5 February2012.
  11. ^"The supply of bus services in the north-east of England".Competition Commission. Archived fromthe originalon 4 February 2012.Retrieved5 February2012.
  12. ^"Stagecoach Boss gives his £1.6m bonus to staff and charity".The Daily Record.Retrieved5 February2012.
  13. ^"Faith in Community Scotland".Faith in Community Scotland.Retrieved5 February2012.
  14. ^"Stagecoach CEO Brian Souter to become chairman next year".Reuters. 22 August 2012.Archivedfrom the original on 30 October 2013.Retrieved22 August2012.
  15. ^Topham, Gwyn (11 December 2019)."Stagecoach chairman Sir Brian Souter to step down".The Guardian.ISSN0261-3077.Retrieved22 September2020.
  16. ^Stagecoach wins railway franchiseBBC News22 September 2006
  17. ^"Virgin passengers get 'better deal'"BBC News7 October 1998
  18. ^Stagecoach Group welcomes East Midlands rail franchise winStagecoach Group 22 June 2007
  19. ^Stagecoach and Virgin win East Coast mainline rail franchiseBBC News27 November 2014
  20. ^"Stagecoach entrepreneur Brian Souter still as driven as ever".The Courier (Dundee).Archived fromthe originalon 4 March 2016.Retrieved28 October2013.
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  22. ^"Stagecoach chairman Sir Brian Souter shows the way to Onesie Day".Daily Record.29 April 2013.Retrieved7 November2013.
  23. ^"Megabus is a xing their luxury coach service".Independent.co.uk.9 April 2017.Retrieved20 November2017.
  24. ^About usArchived3 September 2014 at theWayback Machineon Highland Global Transport website, viewed 28 August 2014
  25. ^Polskibus enters partnership with FlixBusCoach & Bus Weekissue 1326 23 January 2018 page 9
  26. ^PolskiBus to go green with Flixbus tie-upBusesissue 755 February 2018 page 20
  27. ^Souter buys 75% of Finnish coach operatorHerald Scotland6 May 2014
  28. ^Souter Investments drives into Finnish market with OnniBus investmentDundee Courier7 May 2014
  29. ^We advised Koiviston Auto Group in its acquisition of OnniBusEversheds Sutherland 5 October 2018
  30. ^Souter Investments sells Finland's OnniBusBusesissue 764 November 2018 page 20
  31. ^Continued Expansion in New Zealand as Souter Holdings becomes InMotion GroupSouter Holdings 19 August 2015
  32. ^Sir Brian Souter's investment company extends presence in New ZealandThe Herald19 August 2015
  33. ^Souter adds Reesby to expanding fleetBay of Plenty Times19 August 2015
  34. ^Venuto, Damien (21 June 2018)."Fifty jobs on the line as ManaBus and Nakedbus end services".The New Zealand Herald.Retrieved23 June2018.
  35. ^"InMotion Group completes sale of Reesby Rotorua".Souter Investments. 6 February 2019.Archivedfrom the original on 21 August 2019.Retrieved21 August2019.
  36. ^"Souter Investments to sell Howick and Eastern Buses and Mana Coach Services to Transdev".Souter Investments. 20 August 2019.Archivedfrom the original on 21 August 2019.Retrieved21 August2019.
  37. ^"Rail operator Transdev buys Mana Coach Services and Howick & Eastern Buses".Stuff New Zealand. 20 August 2019.Archivedfrom the original on 20 August 2019.Retrieved21 August2019.
  38. ^"Wellington's Mana Coach Services joins Transdev".Transdev Australasia. 1 October 2019.Archivedfrom the original on 8 October 2019.Retrieved8 October2019.
  39. ^"Transdev's Nz Expansion Continues; Howick And Eastern Buses Bought".Australasian Bus & Coach. 4 November 2019.Archivedfrom the original on 4 November 2019.Retrieved5 November2019.
  40. ^Huband, Graham (25 April 2015)."Jim Pettigrew and Sir Brian Souter lead major Scottish accountancy body Icas".The Courier.Archived fromthe originalon 27 April 2015.
  41. ^"Sir Brian Souter CA has been appointed as the new President of ICAS".Institute of Chartered Accountants of Scotland.2 May 2017.
  42. ^abc"SCOTLAND | Poll supports S28 retention".BBC News.30 May 2000.Retrieved5 February2012.
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  44. ^"Keep the Clause: the legacy - News - Scotsman".Scotlandonsunday.scotsman. 6 March 2005. Archived fromthe originalon 13 March 2005.Retrieved5 February2012.
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  46. ^"UK | Scotland | Stagecoach tycoon donates to SNP".BBC News.17 March 2007.Retrieved5 February2012.
  47. ^abcPaul Hutcheon (17 March 2007)."Souter jumps back on SNP bandwagon with £1/2 m donation".Herald.Retrieved5 February2012.
  48. ^"SNP under attack after bus U-turn - Edinburgh, East & Fife - Scotsman".Business.scotsman. 23 April 2007.Retrieved5 February2012.
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  51. ^Black, Andrew (18 May 2011)."BBC News - SNP leader Alex Salmond re-elected as first minister".bbc.co.uk.Retrieved5 February2012.
  52. ^"BBC News - Scottish independence: Sir Brian Souter donates £1m to SNP".BBC News.13 August 2014.Retrieved3 November2014.
  53. ^Paul Hutcheon (6 November 2016)."Major SNP backer Sir Brian Souter has not donated to the party under Sturgeon".Herald.Retrieved2 September2019.
  54. ^"The Register of Members' Financial Interests: Session 2014-15: Norman Baker"(PDF).House of Commons.Retrieved3 September2019.
  55. ^"Scotland's ruling SNP woos tycoon who shunned Nicola Sturgeon".POLITICO.4 January 2024.Retrieved6 January2024.
  56. ^McCall, Chris (6 January 2024)."Brian Souter blasted by Government minister over 'vile' Keep the Clause campaign".Daily Record.Retrieved6 January2024.
  57. ^"Souter Charitable Trust: Grant Guidelines".Souter Charitable Trust.Retrieved25 October2013.
  58. ^"Souter Charitable Trust: Projects".Souter Charitable Trust.Retrieved25 October2013.
  59. ^"Turner Prize in gay rights row after choosing Stagecoach as sponsor".The Daily Telegraph.1 May 2019.
  60. ^"Stagecoach's sponsorship of Turner prize ends over LGBT rights row".The Guardian.2 May 2019.
  61. ^"Biographies — The Entrepreneurial Exchange".Entrepreneurial-exchange.co.uk.Retrieved28 October2013.
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  63. ^"CRIEFF News Archive".Crieff.wordpress. 8 June 2012.Retrieved28 October2013.
  64. ^Custom byline text: Ben Griffiths (8 October 2004)."Baxter and Souter lauded for successful recipes".Herald Scotland.Retrieved28 October2013.
  65. ^"Bus Companies Celebrates Award Success".TravelNorthEast.co.uk. 19 November 2008.Retrieved7 November2013.
  66. ^"Transports Publics 2012 - 'Talent in mobility' awards".Transportspublics-expo. Archived fromthe originalon 9 October 2010.Retrieved5 February2012.
  67. ^Tim Sharp, City Editor (24 June 2010)."Stagecoach Boss warns against cutting OAP free travel".Herald Scotland.Retrieved5 February2012.{{cite web}}:|author=has generic name (help)
  68. ^"Star Awards 2011".Perthshire Chamber of Commerce.Retrieved28 October2013.
  69. ^"Sir Brian Souter enters British Travel Industry Hall of Fame".stagecoach. 18 April 2012.Retrieved19 April2012.
  70. ^"No. 59808".The London Gazette(Supplement). 11 June 2011. p. 2.
  71. ^"Queen's birthday honours list: Knights | UK news".The Guardian.London. 11 June 2011.Retrieved5 February2012.
  72. ^HELEN McARDLE (7 August 2011)."Row grows over honour for Sir Brian".Herald Scotland.Retrieved5 February2012.
  73. ^"Alex Salmond cleared of any wrong-doing in knighthood nomination for Stagecoach tycoon Brian Souter".The Daily Record.28 November 2011.Retrieved5 February2012.
  74. ^Dalberto, Lorenzo (5 July 2011)."Gay students oppose Brian Souter's Knighthood".deadlinenews.co.uk.Retrieved12 November2013.
  75. ^"A wrong turning Stagecoach Boss 's comments are unwise".Herald Scotland. 5 January 1998.Retrieved5 February2012.
  76. ^"Suffering from foot-in-mouth | Business | The Observer".London: Observer.guardian.co.uk. 19 October 2003.Retrieved5 February2012.
  77. ^Margaret Stead."Weblogs as a Career Tool - Career Coach Newsletter October 2003 from".Careersnet.Retrieved5 February2012.
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