§ Dr. McDonaldasked the Chancellor of the Exchequer if he will publish in the Official Report the cost to the Exchequer of restructuring index-linked pension schemes prior to the privatisation of nationalised industries between 1979 and 1983.
§ Mr. MooreThere was no restructuring of index-linked pension schemes prior to the privatisation of nationalised industries between 1979 and 1983. But on privatisation of the National Freight Corporation, a payment of £48.7 million was made, out of the proceeds of the sale, to the National Freight Company pension scheme to fund historic deficiencies in the National Freight Corporation pension funds.
§ Dr. McDonaldasked the Chancellor of the Exchequer if he will publish in the Official Report the expected costs of restructuring index-linked pensions in connection with the privatisation of British Telecom, British Airways and the Royal ordnance factories.
§ Mr. MooreI do not anticipate any extra costs.
In the case of British Airways there is no cost either to BA or to Her Majesty's Government since any cash payments. which are taken by the staff will be provided by the pension fund. They amount to no more than the value of benefits already funded and voluntarily forgone by the individuals who elect to join the new schemes.
When the Royal ordnance factories' employees are transferred to a new company, the Government will make transfer payments into that company's pension scheme in respect of employees who opt to transfer pension rights accrued during their civil service employment. If all employee s opted for transfer, the estimated maximum sum required would be £250 million; but in practice it is likely to be less. But as my hon. Friend the Minister of State for Defence Procurement explained in the House on 16 January — [c. 32] — these payments are not additional expenditure: they represent the bringing forward of an existing liability.
46WNo restructuring proposals have been made in the case of British Telecom.