HC Deb 28 January 1992 vol 202 cc504-6W
Mr. Dobson

To ask the Secretary of State for Energy if he will specify the marketing and public relations functions of Dewe Rogerson on electricity privatisation since the flotation of the generating companies in 1990–91.

Mr. Wakeham

Dewe Rogerson's functions in this period relate to the collection of the further instalments due on the shares in the privatised electricity companies.

Mr. Dobson

To ask the Secretary of State for Energy (1) on what criteria Schroder Wagg was selected as underwriters on electricity privatisation in September 1990; (2) on what criteria Schroder Wagg was selected to advise on a trade sale in the course of electricity privatisation from June to August 1990.

Mr. Wakeham

The firm was selected on the usual principal of their experience and expertise in the areas in question.

Mr. Dobson

To ask the Secretary of State for Energy what advice he has received on electricity privatisation during 1991–92.

Mr. Wakeham

I refer to the answer I gave to the hon. Member on 23 January 1992, at columns282–84.

Mr. Dobson

To ask the Secretary of State for Energy what is his estimate of the fees to be paid in 1991–92 for advice on coal privatisation; and what estimate has been made for 1992–93.

Mr. Wakeham

The provision for preliminary expenses in 1991–92 in connection with the privatisation of British Coal is £5 million. Provision for 1992–93 is under consideration.

Mr. Dobson

To ask the Secretary of State for Energy further to his answer of 23 January, which of the advisers on electricity privatisation were appointed by competitive tender.

Mr. Wakeham

As a general rule the advisers listed in that answer were appointed through a process of competitive tendering. New tenders were not sought for certain of the reporting accountant and property valuer appointments where the firms were already retained by the electricity companies and were judged to have given satisfactory service. Competitions were not held for five contracts, either because they were very small, or on other specific grounds including that of limited alternative sources of expertise.

Mr. Dobson

To ask the Secretary of State for Energy what were the total fees paid out to underwriters in the course of the privatisation of the regional electricity companies and the generating companies, respectively.

Mr. Wakeham

I refer to the answer I gave to the hon. Member on 25 June 1991, at column437.

Mr. Dobson

To ask the Secretary of State for Energy whether any foreign individuals or organisations have been considered for appointment as consultants on mining safety and coal privatisation.

Mr. Wakeham

No foreign individuals or organisations were considered for appointment as consultant on coal mining safety matters.

Mr. Dobson

To ask the Secretary of State for Energy if he will list all those companies that acted as underwriters to the sale of the regional electricity companies, and of the generating companies, respectively, giving the date of their appointments in each case.

Mr. Wakeham

J. Henry Schroder Wagg and Co. Limited was appointed in September 1990, as the Government's lead underwriters to the regional electricity companies sale, to assemble the underwriting group listed below as shown in the prospectus. The underwriting was secured by competitive tender, not by appointment.

Underwriters to the regional electricity companies sale

  • J. Henry Schroder Wagg and Co. Ltd.
  • Barclays de Zoete Wedd Ltd.
  • Baring Brothers and Co. Ltd.
  • The British Linen Bank Ltd.
  • Chartered WestLB Ltd.
  • Charterhouse Bank Ltd.
  • County NatWest Ltd.
  • Robert Fleming and Co. Ltd.
  • Guinness Mahon and Co. Ltd.
  • Hill Samuel Bank Ltd.
  • N. M. Rothschild and Sons Ltd.
  • Laing and Cruickshank
  • Lloyds Merchant Bank Ltd.
  • Samuel Montagu and Co. Ltd.
  • Morgan Grenfell and Co. Ltd.
  • Paribas Ltd.
  • Swiss Bank Corporation
  • UBS Phillips and Drew Securities Ltd.
  • S. G. Warburg and Co. Ltd.
There was no primary underwriting for the generating companies sale.

Mr. Dobson

To ask the Secretary of State for Energy which of the organisations that have advised or are advising on electricity and coal privatisation respectively, have been criticised in public reports by Department of Trade and Industry inspectors.

Mr. Wakeham

Of the advisers listed in my answers to the hon. Member on 23 January 1992, at columns282–84, such references have been made to the following firms engaged on electricity privatisation: Coopers & Lybrand Deloitte; Ernst & Young; James Capel; Kleinwort Benson; Peat Marwick McLintock; Price Waterhouse; Smith New Court; and Spicer & Oppenheim. The extent of criticism varies in scale, and reference should be made to the relevant reports.

No such references have been made to any of the advisers listed as engaged on coal privatisation.

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