HL Deb 05 March 1992 vol 536 c30WA
The Earl of Swinton

asked Her Majesty's Government:

What were the administrative costs of the British Telecom share offer.

The Minister of State, Department of Transport (Lord Brabazon of Tara)

The costs to the Government in 1991/92 of the BT Share Offer are estimated to be as follows:

£ million
UK Offers
Selling and Other Commissions 32.5
Marketing 17.2
Share Information Office 14.6
Prospectus production and distribution 6.6
Receiving and Agent Bank operations 23.8
Advisers' fees and expenses 6.4
Total (UK offers) 101.1
Overseas Offers 3.9
Total (UK and Overseas Offers) 105.0

These costs represent about 1.9 per cent. of the total proceeds due from the sale of shares to the Government, which are estimated at £5,403 million. The costs exclude Stamp Duty and VAT on services provided to the Government, which are not net costs to the Exchequer.