HC Deb 29 October 1987 vol 121 cc442-3
9. Mr. McAvoy

asked the Chancellor of the Exchequer what is his latest estimate of the proceeds from privatisation sales in 1987–88.

Mr. Norman Lamont

An estimate of the proceeds of privatisation will be published as usual in the autumn statement on Tuesday.

Mr. McAvoy

In launching the BP offer the Minister said that it was yet another step on the road to popular capitalism. Given that more than 8 million prospectuses have been issued but only 200,000 people have applied for shares, does he agree that that road is a dead end?

Mr. Lamont

As my right hon. Friend the Chancellor is to make a statement later, and as the matter is still being considered, it would not be appropriate for me to say anything at this stage.

Mr. Dickens

Following the great success of privatisation, cleaner emissions from power stations and lead-free petrol, is not my right hon. Friend missing a rare opportunity to privatise fresh air?

Mr. Lamont

My hon. Friend always wishes to push our programme further forward, but I think that that matter would require a little consideration.

Mr. Gordon Brown

Will the Financial Secretary explain, first, why he has wasted £20 million of public money advertising the sale of BP shares which no one wants to buy? Will he confirm that the estimated cost of the advertising is £100 per successful applicant? Does he recall his statement on 25 September that he expected the sale to make a further major contribution to extending share ownership, and his statement of 15 October that the sale would be another step on the road to mass popular capitalism in this country? Given that no one wants the BP shares, and that 40 per cent. of shareholders have already got out of the privatised companies, what is left of popular capitalism now?

Mr. Lamont

A full statement of the cost of the sale will be laid before the House in the usual way. Clearly, some of the costs are not known at this stage. That will be fully explained to the House.

With regard to the advertising cost, I make no apology for that. We wanted to advertise the sale and to spread share ownership. It would have been quite wrong not to make that attempt at that time and as the market then appeared.

As for the quotations that the hon. Gentleman gave, I am naturally extremely sad that this will not be an opportunity to widen share ownership. Nevertheless, widening share ownership is a wholly admirable and laudable aim and we are determined to go on with it.