HC Deb 03 December 1984 vol 69 cc5-7W
Mr. Ashley

asked the Secretary of State for Trade and Industry what is the estimated total value of the special concessions being offered to purchasers of British Telecom shares.

Mr. Butcher

I refer the right hon. Gentleman to the answer I gave the hon. Member for Dagenham (Mr. Gould) on 27 November.

Mr. Ashley

asked the Secretary of State for Trade and Industry what is the estimated total value of the incentives offered to British Telecom's employees to encourage them to purchase shares, assuming all employees take full advantage of the offers made to them; and if he will publish in the Official Report, when the information is available, details of the number of employees who bought shares, and the total value of the concessions they obtained.

Mr. Butcher

British Telecom has 241,000 employees, the vast majority of whom are eligible for incentives. The terms of the offer to employees are set out in the prospectus and in my reply of 27 November to the hon. Member for Dagenham (Mr. Gould).

Mr. Ashley

asked the Secretary of State for Trade arid Industry if he will request those stockbrokers and other retailers of British Telecom shares who are sharing with charities the 2 per cent. commission they are being paid by the Government to inform him of the proportion of the commission they have given to which charity; and if he will publish the information when it becomes available in the Official Report.

Mr. Butcher

It would not be appropriate for the Government to seek information about gifts intermediaries participating in the British Telecom flotation are making to charities.

Mr. Ashley

asked the Secretary of State for Trade and Industry if he will publish in the Official Report when details are available how much of the money paid to the City institutions in connection with the sale of British Telecom shares went to (a) underwriters (b) retailers of the shares; and if he will list any arrangements made for the sale which have not been common for the sale of shares on previous occasions.

Mr. Butcher

I refer the right hon. Member to my reply of 27 November to the hon. Member for Dagenham (Mr. Gould). Many features of the British Telecom flotation listed there have not been common to the sale of shares on previous occasions.

Mr. Ashley

asked the Secretary of State for Trade and Industry if he will estimate the additional revenue which would have accrued to the Government if all the British Telecom shares sold by 3 December had been paid for in full on that day and not by instalments.

Mr. Butcher

The Government do not believe it would have been possible to make a flotation of this size at a satisfactory price if payment had been required in full at the time of the offer.

Mr. Ashley

asked the Secretary of State for Trade and Industry what has been the cost to (a) public funds and (b) British Telecom of administering the sale of British Telecom shares.

Mr. Butcher

I refer the right hon. Member to the reply I gave on 27 November to the hon. Member for Dagenham (Mr. Gould). The expenses of the offer for sale to be borne by British Telecom are estimated in the prospectus to be £8.4 million exclusive of VAT.