§ Mrs. Virginia BottomleyTo ask the Chancellor of the Exchequer if he will make a further statement on the costs of the BP sale.
§ Mr. Norman LamontIt is provisionally estimated that the cost of the sale of BP shares in the financial year 1987–88 will be some £114 million. This represented about 2 per cent. of the total proceeds raised for the Government of £5,503 million.
The main categories of expenditure are estimated to comprise:
£ million United Kingdom sale —advisers fees 3 —marketing costs 39 —receiving bank registration 5 —underwriting and selling commissions 36 Overseas sales 31 114 In addition, the administrative costs of the Bank of England purchase arrangements borne by the Treasury are provisionally estimated to amount to some £1.4 million.
The corresponding spring supplementary estimate for these costs, which is for a token £1,000 and which will be presented shortly, provides for expenditure on expenses of £161,860,000. The difference represents transfers of funds within Government, principally stamp duty and VAT, which are not a cost to the Exchequer.