§ Mr. Morgan
To ask the Secretary of State for Trade and Industry what is his best estimate of the net receipts to Her Majesty's Government from the sale of the Insurance Services Group of the Export Credits Guarantee Department to NCM of Amsterdam; and what arrangements he has made concerning the commutation of pension entitlement for civil servants transferred to NCM.
§ Mr. Lilley
The gross cost to NCM is £70 million made up as follows£50 million to capitalise the company, relieving the Exchequer of the equivalent responsibility;£20 million for goodwill.
Net of Government's current estimate of costs this leaves net receipts to Government of £12 million of which £5 million—indexed to maintain its present value—is payable by NCM in 1996 subject to the outturn in the first two years of the company's operation in the private sector. NCM (UK) Holding is providing a pension scheme for established ECGD staff transferring from the principal civil service pension scheme—PCSPS—which is closely similar to the PCSPS. These transferees will be able to take across to the new scheme, on a year-for-year basis, their accrued benefits in the PCSPS. They will have three months to decide on this.