§ Mr. DobsonTo ask the Secretary of State for Trade and Industry what was the total sum paid out in fees to outside organisations in the furtherance of privatisation by his Department in 1979–80 and in each subsequent year; and what is his estimate for 1990–91.
§ Mr. Forth[holding answer 12 March 1990]: The answer given in reply to a similar question last year on 13 March 1989, Official Report, columns 102–03, gave actual figures for expenditure on expenses associated with privatisations to 1987–88. The following table, based on published information, shows gross expenditure incurred in connection with the sale of shares in British Steel, British Telecom, Rolls-Royce, and Rover Group plc since then, together with an estimate of expenditure in 1990–91. The figures exclude subscriptions for new shares and injections of funds for restructuring, but include commission and some items (such as stamp duty) which were not paid as fees to outside organisations. The Department also incurred expenses in 1988–89 and 1989–90 under individual contracts for advice to the Department in connection with the sales by the Post Office of Girobank plc and by British Shipbuilders of individual businesses and assets: figures for these are excluded on the grounds of commercial confidentiality.
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(£000s) Company Year Amount Rolls-Royce 1988–89 11,155 1989–90 21 Rover 1988–89 11,655 British Steel 1988–89 158,262 1989–90 23,000 British Telecom 31988–89 121 1989–90 212 1 Actual. 2Provisional. 3 Only an aggregated figure for a variety of expenses was shown in the Appropriation Accounts.
Estimated costs for residual expenditure associated with the sale of shares in Rolls-Royce, British Steel and British Telecom in 1990–91 are £15,000.