§ Mr. Fisherasked the Secretary of State for Trade and Industry (1) whether it is his intention, when valuing the assets of British Telecom prior to privatisation, to do so on the basis of (a) historic cost, (b) current cost or (c) earnings/ratio;
(2) what price-to-earnings ratio he intends to use if he values the assets of British Telecom on earnings;
(3) at what level he intends to project a tax charge when valuing British Telecom assets prior to privatisation;
(4) what amount he intends to include as an element of debt in the balance sheet when preparing British Telecom for privatisation;
(5) by how much he intends to project increased future efficiency when valuing British Telecom assets prior to privatisation.
§ Mr. ButcherThe capital structure of British Telecom plc will only be finalised fairly close to the flotation. The Government intend to ensure that British Telecom plc has the right capital structure both to allow a successful flotation to occur and to provide a sound basis for investment and the future development of the business.