Britoil (Hansard, 15 November 1982)

HC Deb 15 November 1982 vol 32 cc8-10 8

§ 9. Mr. Dalyell
asked the Secretary of State for Energy if he will make a statement on the proposed underwriting fees for the sale of Britoil.

§ 19. Mr. Renton
asked the Secretary of State for Energy whether he is satisfied with the progress of plans to encourage employees and small private shareholders to invest in Britoil.

§ Mr. Lawson
I refer the hon. Member and my hon. Friend to my statement of 10 November.

§ Mr. Dalyell
What reply does the Secretary of State give to the sober and responsible leader writer inThe Sunday Timeswho referred to his action as particularly pigheaded?

§ Mr. Lawson
The leader writer of that journal may well have been sober, but he was certainly not responsible nor was his judgment correct.

§ Mr. Rost
If the Britoil issue had not been underwritten, is it not a fact that the issue price would have had to be fixed at a lower level and the taxpayer would not have received the same price?

§ Mr. Lawson
I think that that is probably correct.

§ Mr. Douglas
Will the Secretary of State tell us about the terms in the Britoil prospectus referred to as "commercial reserves"? What is meant by "commercial reserves"?

§ The right hon. Gentleman boasted last week that the issue was made only on the London stock exchange. Is it correct that the prospectus would not have met the Security and Exchange Commission's standards and that it could not possibly have been issued on the New York stock exchange?

§ Mr. Lawson
The phrase "commercial reserves" means proven and probable reserves. The hon. Gentleman will be able to read about the matter to his heart's content in the full and voluminous prospectus.

§ I did not consider the requirements of the New York stock exchange. I had no intention of the issue being floated on that exchange, the Frankfurt stock exchange or, for that matter, the Paris bourse.

§ Mr. Eggar
When the Opposition spend most of their time complaining that shares might be sold abroad, is it not extraordinary that they now advocate that?

§ Mr. Lawson
I entirely agree. The Opposition always try to have it both ways. As a result, it is impossible to make sense of anything they say.

§ Mr. Rowlands
Is the Secretary of State aware that, unlike the Amersham International prospectus, the Britoil prospectus does not tell us about the cost of fees? Should he not issue a real prospectus, instead of the false one that we have had in the press in the past few days, which tells the truth about future balance sheets, profits and dividends of his creature, Britoil? Is it not a fact that the balance sheet cannot be squared unless the new company disposes of considerable North Sea assets in the not too distant future?

§ Mr. Lawson
That is a serious allegation. To issue a false prospectus is a criminal offence. The prospectus was issued after most careful consideration by the entire board, the responsible Ministers and the eminent lawyers who have advised us throughout. I hope that the hon. Gentleman will withdraw his suggestion.

§ Mr. Rowlands
On no account will I withdraw any statement that I have made to the effect that the right hon. Gentleman is responsible for the Britoil issue. [HON. MEMBERS: "Withdraw."] May I put it to him, and let him challenge whether it is inaccurate, that the prospectus includes no reference to future balance sheets, forecasts or dividends?

§ Mr. Michael Morris
On a point of order, Mr. Speaker. I clearly heard the Opposition spokesman accuse my right hon. Friend of issuing a false document to the public.

§ Mr. Speaker
If the hon. Member for Northampton, South (Mr. Morris) does not mind, it will help the House if we wait until the end of Question Time to deal with the point of order. I wish to make progress.

§ Mr. Lawson
I hope that, on reflection, the hon. Member for Merthyr Tydfil (Mr. Rowlands) will withdraw the allegation. He is a parliamentarian and understands what is proper in the House.

§ It is impossible to state the full costs, which will include the handling of applications, until the full volume of applications is known. As soon as the figures are known, the House will be told. All the information that can be revealed is in the prospectus.

§ Later—

§ Mr. Michael Morris
On a point of order, Mr. Speaker. I clearly heard the hon. Member for Merthyr Tydfil (Mr. Rowlands) state that my right hon. Friend the Secretary of State had offered a false prospectus in relation to the Britoil issue. As that is a very serious charge against my right hon. Friend, as well as the auditors and board of Britoil and the agent for the issue, the latter three being unable to answer the challenge in the House, would it not be appropriate for the hon. Gentleman to withdraw his allegation or to repeat it outside, where I believe it would be of a slanderous and actionable nature?

§ Mr. Rowlands
Further to that point of order, Mr. Speaker. Of course, I should like to have the opportunity to checkHansard,and I will act accordingly after that.