HC Deb 10 January 1977 vol 923 cc418-9W
Mr. Hoyle

asked the Chancellor of the Exchequer what provision has been made to restore the Government-controlled shareholding in BP if the Burmah shareholders succeed in their claim against the Bank of England.

Mr. Joel Barnett

I have already made it clear that I see little chance of that action succeeding.

Mr. Hoyle

asked the Chancellor of the Exchequer (1) if the Government retained their present shareholding, plus the stock held by the Bank of England in BP, what is the estimated return on this stock over the next 20 years;

(2) what is the estimated return over the next 20 years if the Government hold 51 per cent. of the BP stock;

(3) what is the estimated return over the next 20 years if the Government-controlled shareholding in BP is depleted by a successful legal action by Burmah shareholders.

Mr. Joel Barnett

It is not possible to forecast the return on the stock over so long a period.

Mr. Hoyle

asked the Chancellor of the Exchequer if the BP shares at present held by the Government are sold internally, what will be the effect on the sale of gilts and other Government stock.

Mr. Joel Barnett

The effect of a sale of any shares held by the Bank of England or the Government would be to reduce the PSBR and thus to reduce the volume of public sector debt which needs to be sold to the non-Bank private sector in order to achieve the target for DCE. It is not thought that it would have more than a temporary effect on the sale of Government stocks.

Mr. Hoyle

asked the Chancellor of the Exchequer when it is contemplated that the sale of Government holdings in BP will take place.

Mr. Joel Barnett

No decision has yet been taken on the precise timing.