HC Deb 16 October 1996 vol 282 cc948-9W
Mr. Llew Smith

To ask the President of the Board of Trade how many shares in British Energy are held by Her Majesty's Government following privatisation. [40501]

Mr. Page

Approximately 85.9 million shares in British Energy plc are presently held by the Government.

Mr. Llew Smith

To ask the President of the Board of Trade if he will make a statement on the factors underlying the decision not to sell 12.3 per cent. of British Energy shares during the privatisation of the company. [40503]

Mr. Page

In line with previous privatisations, and as set out in detail in the British Energy share offer prospectus, up to 90 million shares in British Energy plc were retained by the Secretary of State at the time of the offer to cover the over-allotment option granted to BZW. Following settlement of that option on 13 August, the Secretary of State retained approximately 85.9 million shares, of which approximately 5 million represent shares retained to satisfy potential entitlements to bonus shares under the UK public offer.

Mrs. Beckett

To ask the President of the Board of Trade what percentage and cash value of the shares in British Energy remain held on behalf of the Government; and if he will make a statement. [40709]

Mr. Page

Up to 90 million shares were retained at the time of the share offer to cover the over-allotment option granted to BZW. Following settlement of that option on 13 August, the Secretary of State retained approximately 85.9 million shares, of which approximately 5 million shares are retained to cover potential entitlements to bonus shares under the UK public offer. The shares retained by the Secretary of State for Trade and Industry on behalf of the Government represent approximately 12⅓ per cent. of the total shares.

Mrs. Beckett

To ask the President of the Board of Trade what discussions he has had, or his officials have had, regarding(a) reviewing the contributions made by British Energy to the segregated fund and (b) assessing British Energy's ability to meet its operational liabilities; and what staff and mechanisms are to be deployed to monitor (a) and (b) above. [40727]

Mr. Page

British Energy's contributions to the segregated fund are determined by British Energy and the Nuclear Generation Decommissioning Fund Ltd., owned by the trustees of an independent trust, under the terms of the contractual arrangements between them. It is for British Energy to deal with its operational liabilities.

Mrs. Beckett

To ask the President of the Board of Trade what has been the total sum raised for the Exchequer by the sale of British Energy to date; and what further moneys are forecasted. [40721]

Mr. Page

Proceeds from the British Energy Share Offer to date have been £630 million from the first instalment paid for the shares sold and £60 million of debt repayment. A further £100 million of debt is expected to be repayed later in this financial year. In the financial year 1997–98, it is anticipated that the proceeds from payment of the second instalment on the shares sold will be £590 million. British Energy will continue to have a debt to the Government, in the form of bonds to the value of £440 million, and the Government hold shares in British Energy which have a value of about £183 million at the issue price. In addition, liabilities of £3.7 billion have been transferred to the private sector.