§ Mr. Fisherasked the Secretary of State for Trade and Industry whether he intends to offer individual telephone subscribers who buy shares in British Telecom (a) conventional dividends, (b) vouchers for rental rebates, (c) discounts on telephone invoices, (d) a guaranteed rate of interest return and (e)any other inducements.
§ Mr. ButcherAs my right hon. Friend the Secretary of State for Trade and Industry said in his statement on 2 May, the Government have decided to offer special incentives to telephone subscribers who buy shares in British Telecom. One possibility we are considering would take the form of vouchers which could be used to offset part of the cost of quarterly telephone bills for a subsequent period. Shares purchased under any such special arrangements would also attract dividends on the same basis as other ordinary shares in the company.
§ Mr. Fisherasked the Secretary of State for Trade and Industry whether he can now estimate the cost to British Telecom of the withdrawal of first year capital allowances in the financial years 1984–85, 1985–86, 1986–87 and 1987–88.
§ Mr. ButcherThe effect on BT plc's tax position of the withdrawal of first year capital allowances will depend on various factors, including in particular the amount of the company's capital investment during the period.
§ Mr. Fisherasked the Secretary of State for Trade and Industry what discussions he has had with (a) London stock exchange, (b) New York stock exchange, (c) Tokyo stock exchange and (d) any other stock exchange over the flotation of shares in British Telecom.
§ Mr. ButcherThe Department's advisers have discussed the flotation with the London stock exchange, and I would expect such discussions to continue between now and the flotation. There have not yet been any such discussions with other stock exchanges, but some will be necessary in due course if a decision is made to proceed with overseas sales.
§ Mr. Fisherasked the Secretary of State for Trade and Industry whether Her Majesty's Government have offered a moratorium to British Telecom on debt repayment to Her Majesty's Government.
§ Mr. ButcherBritish Telecom's existing debt to the National Loans Fund will be extinguished under section 62310W of the Telecommunications Act 1984. My right hon. Friend the Secretary of State for Trade and Industry made it clear in his statement on 2 May that the successor company, BT plc, would have an initial debt to the Government in the form of debentures with a capital value of £2,750 million. That amount will be repaid to the Government by BT plc in full on terms agreed between the Secretary of State and the successor company.
§ Mr. Fisherasked the Secretary of State for Trade and Industry (1) if he has sought assurances from British Telecom on cross-subsidisation of its manufacturing and supply activities;
(2) what discussions he has had in the past six months with the Telecommunication Engineering and Manufacturing Association and individual manufacturers on British Telecom's purchasing policy and rights to manufacture.
§ Mr. ButcherI shall reply to the hon. Member as soon as possible.
§ Mr. Fisherasked the Secretary of State for Trade and Industry what commissions have been offered to United Kingdom and foreign stockbrokers for handling the flotation of shares in British Telecom; and what he anticipates will be the likely cost of such commissions.
§ Mr. ButcherAn announcement about commissions to brokers and others will be made once the overall commission structure for the sale has been settled.
§ Mr. Fisherasked the Secretary of State for Trade and Industry whether he has clearance from all stock exchanges through which he intends to offer shares in British Telecom for sale.
§ Mr. ButcherAny necessary stock exchange approvals connected with the sale will be sought in the usual way much nearer the date of the flotation.
§ Mr. Fisherasked the Secretary of State for Trade and Industry if he will estimate the cost of printing (a) the full prospectus and (b) the short prospectus for the flotation of shares in British Telecom.
§ Mr. ButcherNo. But normal Government accounting procedures will apply to all money spent.
§ Mr. Fisherasked the Secretary of State for Trade and Industry what was the total British Telecom advertising budget for each of the past five years; and what expenditure is planned for 1984–85.
§ Mr. ButcherBritish Telecom's advertising expenditure is a commercial matter for the Board.
§ Mr. Fisherasked the Secretary of State for Trade and Industry what the television advertising budget for launching the flotation of shares in British Telecom will be for (a) British Telecom and (b)his Department.
§ Mr. ButcherNo decision has yet been made.
§ Mr. Fisherasked the Secretary of State for Trade and Industry how many people in (a) the United Kingdom, (b) England, (c) Scotland, (d) Wales, (e) Northern Ireland, (f) London and (g) the rural areas have been or will be interviewed for the market research into the attitudes of the general public into the flotation of shares in British Telecom.
§ Mr. ButcherNo decisions have yet been made on future research.
311WThe appropriate size of any poll is a matter of judgment for Government's and British Telecom's joint advisers. The numbers interviewed in different areas are however representative of the geographical distribution of the population.
§ Mr. Fisherasked the Secretary of State for Trade and Industry (1) what is the cost of recent market research by British Telecom into public attitudes towards the flotation of shares in British Telecom;
(2) whether he will publish the results of the market research commissioned by British Telecom into the attitudes of the general public to the flotation of shares in British Telecom.
§ Mr. ButcherThe cost, and publication, of any work commissioned by British Telecom is a matter for the Board of BT.
Some market research has been commissioned jointly by BT and the Department. The results of the work are confidential to BT, the Department and their respective advisers. The Department's contribution to the cost of that work is £13,750. Normal Government accounting procedures will apply to all money spent.
§ Mr. Fisherasked the Secretary of State for Trade and Industry what he anticipates will be the cost of additional postage incurred by British Telecom as a result of its flotation of shares.
§ Mr. ButcherThis is a matter for the board.
§ Mr. Fisherasked the Secretary of State for Trade and Industry what he now considers will be the cost of altering the basis of British Telecom's pension fund as a result of privatisation.
§ Mr. ButcherNo alteration to the basis of British Telecom's pension fund will result from privatisation.
§ Mr. Fisherasked the Secretary of State for Trade and Industry whether the cost of advertising the flotation of shares in British Telecom, undertaken by his Department, will be met from the sale proceeds.
§ Mr. ButcherYes.
§ Mr. Fisherasked the Secretary of State for Trade and Industry what is the planned advertising budget of (a) British Telecom and (b) his Department for launching the flotation of shares in British Telecom.
§ Mr. ButcherNo decision has yet been made.