§ Mr. Gerald BowdenTo ask the Secretary of State for the Environment what were the administrative costs of the sale of the 10 water public limited companies.
§ Mr. TrippierThe costs to the Government in 1989–90 of the water share offers are estimated to be as follows:
£ million United Kingdom offers Underwriting 33.2 Selling and broking commission 6.7 Marketing 17.5 Share information office 7.2 Prospectus production and distribution 11.5 Receiving banks 17.7 Advisers' fees 18.7 Total (United Kingdom offers) 112.5 Overseas offers 15.4 Total (United Kingdom and overseas offers) 127.9 These costs represent about 2.5 per cent. of the proceeds from the sale of shares in the water share offers, which are estimated at £5,113 million. The costs exclude stamp duty and VAT on services provided to the Government which are not net costs to the Exchequer.
The figures above also exclude the overall net capital injection into the plcs of £1,499 million, as explained by my hon. and learned Friend the Member for Folkestone and Hythe (Mr. Howard) in reply to the question from my hon. Friend the Member for Cardiff, North (Mr. Jones) on 26 October 1989 and the costs incurred in earlier years which totalled £6 million (excluding VAT) as provided by my right hon. Friend the Secretary of State in reply to the 571W question from the hon. Member for Holborn and St. Pancras (Mr. Dobson) on 12 March 1990, Official Report, column 103.