HC Deb 27 November 1989 vol 162 cc83-5W
Dr. Cunningham

To ask the Secretary of State for the Environment if he will list, for each water company, the names and status of the trustees nominated for the purpose of the water holding company trust schemes for employee share ownership.

Mr. Chris Patten

The trustee of the trust scheme established by each of the water holding companies is a wholly owned subsidiary of the relevant water holding company. The names of the trustees are as follows:

  • Anglian Water Share Scheme Trustees Limited
  • Northumbrian Water Share Scheme Trustees Limited
  • North West Water Share Scheme Trustees Limited
  • Severn Trent Water Share Scheme Trustees Limited
  • Southern Water Share Scheme Trustees Limited
  • SWW Share Schemes Trustees Limited
  • Thames Water Share Scheme Trustees Limited
  • WW Share Scheme Trustees Limited
  • Wessex Water Trustee Company Limited
  • Yorkshire Water Share Scheme Trustees Limited.

Sir John Farr

To ask the Secretary of State for the Environment (1) what was the number of households circulated by Anglian Water plc in respect of their recent publicity campaign;

(2) what was the number of households circulated by Severn Trent Water plc in respect of their recent publicity campaign;

(3) what was the cost of the recent publicity campaign by Anglian Water plc;

(4) what was the cost of the recent publicity campaign by Severn Trent Water plc;

(5) what was the source of funding for the recent publicity campaign by Anglian Water plc;

(6) what was the source of funding for the recent publicity campaign by Severn Trent Water plc.

Mr. Howard

In September, the chairmen of Anglian Water plc and Severn Trent plc wrote to some 2,247,000 and 3,360,000 customers respectively about the forthcoming water share offers. The cost of these mailings and those by the other eight water plcs will be borne jointly by the water plcs through their subscriptions to the Water Services Association and by the Government. The costs to the Government of marketing the water share offers will be reported to Parliament in due course.

Mr. Michael

To ask the Secretary of State for the Environment (1) what is the upper limit and lower limit, respectively, on the proportion of shares in each of the 10 water companies which are being made available to foreign investors;

(2) what is the upper limit and the lower limit, respectively, on the proportion of shares in each of the water companies which will be sold only to British people.

Mr. Howard

Full details are set out in the prospectus for the water share offers, a copy of which has been placed in the Library.

Out of the total number of shares on offer, 18.5 per cent. are initially being made available to overseas investors. If there is heavy demand for shares by members of the public in the United Kingdom offers for sale, a clawback provision allows for 25 per cent. of the shares available under the overseas offers to be made available to the public.

Under the United Kingdom offer for sale 23.55 per cent. of the ordinary share capital is being made available to the general public (including eligible customers, employees and pensioners of the companies). A further 3 per cent. is reserved for share bonus entitlements and applications from eligible employees under the free and matching offers. If both the overseas and the institutional clawbacks are triggered then 46·75 per cent. of the ordinary share capital is available to the general public.

There are no nationality restrictions on the United Kingdom public offer, except that United States and Canadian persons as defined in the prospectus are not permitted to apply. Eligible customers, employees and pensioners of the companies will be given preference over the general public in the allocation of shares as described in the prospectus.

Mr. Michael

To ask the Secretary of State for the Environment what protections are built into the flotation process for each of the 10 water companies currently subject to flotations to guard against foreign takeover; and what guarantees exist to ensure these protections have long-term effects.

Mr. Howard

My right hon. Friend the Secretary of State will hold a special share in each of the nine English water and sewage companies which will empower him to prevent anyone owning more than 15 per cent. of the shares in any of the companies in the period until 31 December 1994. There are also provisions in the Water Act 1989 relating to mergers in the water industry. Details of the special share arrangements and the merger provisions of the Water Act 1989 are set out in the prospectus for the water offers, a copy of which has been placed in the Library.

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