§ Mr. DobsonTo ask the Secretary of State for Energy what is the total cost of the advertising campaign for the privatisation of the electricity generating companies.
§ Mr. WakehamIt is not the practice to give advertising costs in advance of flotations. All expenditure, including that on marketing, will be reported to Parliament in the usual way.
§ Mr. DobsonTo ask the Secretary of State for Energy whether at the time he appointed Smith New Court to advise on electricity privatisation he was aware they had been criticised by DTI inspectors for their conduct in the Consolidated Goldfields case.
§ Mr. WakehamI took all relevant factors into account in appointing Smith New Court.
§ Mr. DobsonTo ask the Secretary of State for Energy whether Smith New Court's appointment as advisers on electricity privatisation was the result of a process of competitive tendering.
§ Mr. WakehamIt was agreed in 1989 that there should be the same broking syndicate of James Capel, Rowe and Pitman, Smith New Court, Cazenoves, County NatWest and Kleinwort Benson Securities for both the 12 regional electricity companies and the generating companies flotations. Each of the brokers will receive a broking fee for both issues relating to the amount of stock for which they are responsible. As Smith New Court was already a member of the broking syndicate and as no advisory fee will be payable to Smith New Court, a competitive tender would not be appropriate.
§ Mr. DobsonTo ask the Secretary of State for Energy if he will list all the individuals and organisations who have been retained by his Department as advisers on electricity privatisation, indicating in each case the aspect on which they have advised together with the date of their appointment and where appropriate the date they ceased to be retained as advisers.
§ Mr. WakehamThe information is as follows
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Adviser Area From To Binder Hamlyn Reporting accountants May 1988 December 1990 Ernst and Whinney3 Reporting accountants May 1988 December 1990 Coopers and Lybrand2 Reporting accountants May 1988 December 1990 Spicer and Oppenheim4 Reporting accountants May 1988 December 1990 Touche Ross Reporting accountants May 1988 December 1990 BM RB Market research August 1988 Continuing Davis Polk and Wardell United States legal September 1988 Continuing Russell Reynolds Executive selection December 1988 February 1989 Oster Renault Canadian legal February 1989 Continuing Anderson Mori and Rabinowitz Japanese legal March 1989 Continuing Goldman Sachs United States financial December 1988 Continuing Wood Gundy Canadian financial March 1989 Continuing Nomura Japanese financial March 1989 Continuing Credit Suisse First Boston European Financial June 1989 Continuing Saxton Bampfylde Executive selection February 1989 October 1989 Price Waterhouse Accounting July 1988 July 1989 The VPI Group Marketing February 1989 January 1990 Jones Lang Wootton Property March 1989 Continuing UKAEA Advanced gas-cooled reactor September 1989 October 1989 Nuclear Services Group Decommissioning April 1989 April 1989 Lamb and Edge Property valuers June 1989 August 1990 Grimley J. R. Eve Property valuers June 1989 April 1990 Gerald Eve Property valuers June 1989 April 1990 Knight Frank Rutley Property valuers June 1989 April 1990 Weatherall Green and Smith Property valuers June 1989 April 1990 Debenham Tewson and Cheshire Property valuers June 1989 April 1990 Hartnell Taylor and Cook Property valuers June 1989 September 1990 Connell Hallum and Brackett Property valuers June 1989 April 1990 Matthews and Goodman Property valuers June 1989 March 1990 Cook and Arkwright Property valuers June 1989 April 1990 Bernard Thorpe Property valuers June 1989 April 1990 Henry Butcher Property valuers June 1989 September 1990 Debenham Tewson and Chinnocks Property valuers August 1990 Continuing Edward Erdman Property valuers August 1990 Continuing Lloyd Northover Design January 1990 February 1990 Coopers and Lybrand2 Salaries July 1989 April 1990 Williams Lea Printing April 1989 October 1989 Dewe Rogerson Marketing and public relations February 1990 Continuing Lowe Bell Special marketing and public relations February 1990 February 1990
Adviser Area From To Russell Reynolds Executive selection February 1990 July 1990 RL Associates Licence X factors January 1990 Continuing Lincoln Hannah Press cutting March 1990 Continuing Imagination Roadshows May 1990 Continuing WCRS Advertising May 1990 December 1990 Rowe and Pitman Brokers September 1990 Continuing J. Henry Schroder Wagg Possible PowerGen trade sale July 1990 September 1990 J. Chiene Pricing June 1990 Continuing J. Henry Schroder Wagg Underwriting September 1990 November 19905 Company Writers Prospectus September 1990 October 1990 Phillips and Buck Legal July 1990 August 1990 Notes: Certain overseas lawyers have provided advice on overseas jurisdictions. 1 Lloyds Bank were initially appointed to advise on receiving bank and registrar issues and subsequently appointed as the lead Receiving Bank. 2 Coopers and Lybrand and Deloitte Haskins and Sells have merged and are now known as Coopers and Lybrand Deloitte. 3 Now known as Ernst and Young. 4 Now part of Touche Ross. 5 Subsequently appointed as Lead Underwriter.
§ Mr. DobsonTo ask the Secretary of State for Energy what will be the total underwriting fees in respect of the flotation of the electricity generating companies.
§ Mr. WakehamThe total underwriting fees on the flotation of the electricity generating companies have not yet been fixed. The fees will only be settled once the price and terms of the offer for sale are agreed.
§ Mr. DobsonTo ask the Secretary of State for Energy when he, any other Minister or any of his officials, last had discussions with any director, employee or adviser of the Hanson Group or any of its companies about electricity privatisation.
§ Mr. WakehamMy private discussions with companies and individuals about electricity privatisation are confidential. I announced on 23 August 1990 that discussions with Hanson plc on a possible trade sale of PowerGen had ended.
§ Mr. DobsonTo ask the Secretary of State for Energy what are the total fees paid out so far to Dewe Rogerson for its involvement in electricity privatisation.
§ Mr. WakehamThe fees paid to advisers are commercially confidential. The full costs of the privatisation, including marketing costs, will be reported to Parliament in the usual way.