§ Mr. Dobson
asked the Chancellor of the Exchequer if he will give a breakdown of the £14.3 million costs incurred in selling ordinary shares in 575W British Petroleum, the conditions under which the payments were made and a list of those to whom the payments were made.
§ Mr. Lawson
[pursuant to his reply, Tuesday 11 March 1980]: Costs incurred in the 1979 offer of Government-owned BP shares to the public are not yet complete, but the latest estimate of the outcome is as follows:
£ million VAT Stamp Duty 6.80 Underwriting and allotment commissions 4.25 Legal Fees 0.45 Other professional fees 0.36 Preparation of documentation and distribution 1.03 Processing of applications and registration 1.35 The Securities and Exchange Commission registration fee 0.06 TOTAL 14.30
Where applicable, competitive tenders were first obtained in advance.
The main payments were made to the six underwriting banks, the five brokers and the four receiving banks. Payments were also made for printing, distribution, advertising and for professional advice and to the Post Office, the Bank of England and British Petroleum for their expenses in the issue. In addition a registration fee was paid to the Securities and Exchange Commission and there were payments of stamp duty to the Inland Revenue and VAT to Customs and Excise.