§ Miss LestorTo ask the Chancellor of the Exchequer what have been the costs of privatisation of companies, both by private sale and public flotation, for each company privatised since 1979, and for each year since554W 1979, including separate figures for (a) underwriting, selling and broking, (b) commission, (c) bank costs, (d) marketing, (e) fees to advisers, (f) bonus shares, (g) bill vouchers and (h) any other costs.
§ Mr. Norman Lamont[holding answer 19 January 1989]: The total costs to the Government of each privatisation since 1979 are in the table. Estimated costs of underwriting, selling, and broking commission, receiving bank costs, marketing, advisers' fees and incentives in respect of all primary share sales from British Telecom onwards are given in the following reports presented to the House by the Comptroller and Auditor General:
Session 1984–85
- Department of Trade and Industry: Sale of Government Shareholdings in British Telecommunications plc HC 495
Session 1987–88
- Department of Energy: Sale of Government Shareholding in British Gas plc HC 22
- Department of Transport: Sale of Government Shareholding in British Airways plc HC 37
- Department of Trade and Industry: Sale of Government Shareholding in Rolls-Royce plc HC 243
- Department of Transport: Sale of Government Shareholding in BAA plc HC 312
Figures given in the reports for customer bill vouchers and bonus shares relate to the maximum value assuming all incentives will be taken up by shareholders. Final figures will depend on the number of eligible shareholders at the end of the qualifying periods. The value of bonus shares distributed for Britoil in 1986 was £3 million.
For residual share sales, and for primary share sales prior to British Telecom, the information requested is available only at disproportionate cost. The Department of Trade and Industry expects to able to report the costs of the British Steel flotation shortly.
Table A Total costs of sale to Her Majesty's Government including VAT, excluding incentives Company name Year £ thousands British Aerospace 1981 5,600 Cable and Wireless 1981 8,900 Amersham International 1982 2,900 Britoil 1982 12,600 National Freight Corporation 1982 300 Associated British Ports 1983 2,600 British Petroleum 1983 22,760 Cable and Wireless 1983 12,500 Associated British Ports 1984 1,400 Enterprise Oil 1984 10,700 Jaguar 1984 1n/a Sealink 1984 100 Wytch Farm 1984 98 British Telecom 1984 183,000 British Aerospace 1985 17,800 Britoil 1985 23,300 Cable and Wireless 1985 21,400 British Gas 1986 2175,000 British Shipbuilding warship yards 1986 55,500 British Airways 1987 33,900 Rolls Royce 1987 341,600 Plant Breeding Institute 1987 4822 Royal Ordnance 1987 51,900 BAA 1987 45,200 Rover Group 1987 1,800 British Petroleum 1987 648,299 1 The sale of Jaguar plc was conducted by BL plc and details of the appointments and the total cost are a matter for the company. Only one firm was appointed to advise the Government; it is not the practice to disclose fees paid to individual firms. 2 Excluding Stamp Duty. 3 Expenditure incurred to date, excluding subscription for new shares. 4 Exluding VAT. 5 Expenditure incurred after 1 January 1985. 6 Expenditure incurred to date.