HL Deb 15 May 1986 vol 474 cc1382-4WA
Lord Diamond

asked Her Majesty's Government:

With regard to each of their several completed and intended privatisation measures since 1979, what gross amounts were payable by the public in each subsequent calendar year, including estimates for 1986, 1987 and 1988, and what net amounts were received into the Consolidated Fund (other than in respect of stamp duties, etc.) in those same years, including estimated amounts receivable during 1986, 1987 and 1988.

Lord Brabazon of Tara

Gross amounts payable by the public to the government and amounts received into the Consolidated Fund (other than stamp duty and VAT) for each sale in the privatisation programme in each calendar year from 1979 to 1986 (up to 14th May) are set out in the table below. Expected privatisation proceeds for the financial years 1986–87 to 1988–89 are set out in Table 2.11 of the Public Expenditure White Paper, Cmnd. 9702. It is not the Government's practice to make any forecasts of the timing of individual sales or of the likely proceeds.

Year Sale Gross proceeds Proceeds net of sale costs stamp duty and VAT
1979 British Petroleum II(1) 120 106
1980 British Petroleum II 170 170
1981 British Aerospace I 49(2) 43
Cable & Wireless I 190(2) 181
1982 Amersham International 63 64(3)
Britoil I 255(4) 243
1983 Britoil I 293 293
Associated British Ports I 48 46
British Petroleum III 269 237
Cable & Wireless II 100 88
1984 British Petroleum III 306 306
Cable & Wireless II 175 175
Associated British Ports II 52 51
Enterprise Oil 392 382
British Telecom 1,483 1,336(5)
1985 British Aerospace II 363 346
British Telecom 1,186 1,186
Britoil II 449 425
Cable & Wireless III 308 286(6)
1986 Cable & Wireless III 294 294
(to 14 May) British Telecom 1,186 1,186

All figures are to the nearest £ million. Where payment was made in two or more instalments falling in different calendar years, the full costs of the sale have been netted off against receipts from the first instalment. The flotation of Jaguar (which raised £297 million for the BL Board) has been excluded from this table as this was not a government sale. Other notes are as follows:

(1) First sale of British Petroleum shares took place in 1977.

(2) In addition, capital of £100 million (in the case of British Aerospace) and £35 million (Cable and Wireless) was raised through the offer for sale and injected into the company as part of the arrangements for privatisation.

(3) Costs of the sale were more than offset by payments of "Ways and Means" rates on balances of application payments monies held in the Bank of England.

(4) Excludes repayment by Britoil of £88 million debentures with interest.

(5) Using latest estimates of total costs; costs arising from BT voucher scheme will continue to be incurred until 1987–88.

(6) Latest estimate; some costs remain to be settled.