§ Mr. MichaelTo ask the Secretary of State for Wales (1) what is the upper limit and the lower limit, respectively, on the proportion of shares in Welsh Water which will be sold only to Welsh people in the current share flotation;
(2) what is the upper limit and the lower limit, respectively, on the proportion of shares in Welsh Water which are being made available to foreign investors;
(3) what is the upper limit and the lower limit, respectively, on the proportion of shares in Welsh Water which will be sold only to British people.
§ Mr. Peter WalkerInitially 18.5 per cent. of the total offer is being made available to overseas investors. If there is a heavy demand for shares by members of the public a clawback provision allows for 25 per cent. of the shares available under the overseas offer 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 company). A further 3
Number of dwellings with certain characteristics Wales Gwent Newport Characteristic 1981 1986 1981 1986 1986 Unfit 90,900 79,900 17,000 8,800 1,300 Threshold repair cost1 243,900 123,600 30,700 14,700 1,700 Lacking inside we 55,000 19,600 6,100 2,100 400 Lacking fixed bath or shower 44,300 14,900 4,800 2,000 400 1Threshold figures for repair costs are £2,500 and £.3,000 in 1981 and 1986 respectively. Since 1986, a substantial additional renovation has been carried out with grant assistance: the total numbers
118Wper cent. is reserved to meet share bonus entitlements and applications from eligible employees under the free and matching offers. If both the overseas and the institutional clawbacks are triggered, 46.875 per cent. of the ordinary share capital is available to the general public.
Eligible customers of Welsh Water who apply for shares in the company will be able to indicate whether they wish to receive customer bonus shares or a customer discount if their application is successful. It is for individuals, including those who are Welsh, to decide for themselves whether or not to buy shares.
§ Mr. MichaelTo ask the Secretary of State for Wales what proportion of the £62 million cost of the present water flotation will fall to met by Welsh Water plc.
§ Mr. Peter WalkerThe prospectus for the water share offers which has been placed in the Library discloses that Welsh Water estimates that the expenses attributable and incidental to the Welsh combined offer will amount to £5 million (exclusive of VAT).
§ Mr. MichaelTo ask the Secretary of State for Wales what protections are built into the flotation process for Welsh Water to guard against foreign takeover; and what guarantees exist to ensure these protections have long-term effect.
§ Mr. Peter WalkerI will hold a special share in Welsh Water which will empower me to prevent anyone from owning more than 15 per cent. of the shares in Welsh Water plc in the period up to 31 December 1994. Following the redemption of the special share the 15 per cent. limitation on shareholding will remain unless it is removed by a vote of 75 per cent. of shareholders in a special resolution.