§ The Earl of Swintonasked Her Majesty's Government:
What were the administrative costs of the sale of the ten water public limited companies.
§ The Parliamentary Under-Secretary of State, Department of the Environment (Lord Hesketh)The costs to the government in 1989–90 of the water share offers are estimated to be as follows:
UK Offers £ million 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 (UK Offers) 112–5 Overseas Offers 15–4 Total (UK 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 right honourable friend the Member for Folkestone and Hythe in reply to the Question from my honourable friend the Member for Cardiff North on 26th October 1989 and the costs incurred in earlier years which totalled £ 6 million (excluding VAT) as provided by my right honourable friend the Secretary of State in reply to the question from the honourable Member for Holborn and St. Pancras on 12th March 1990 in another place.