§ Lord Glenarthurasked Her Majesty's Government:
What were the administrative costs of the sale of the two Scottish electricity companies.
§ The Parliamentary Under-Secretary of State, Scottish Office (Lord Strathclyde)The costs to the Government in 1991–92 of the Scottish electricity share offers are estimated to be as follows:
UK Offers £ million Underwriting 21.5 Selling and Broking Commission 4.2 Marketing 5.2 Share Information Office 4.3 Prospectus production and distribution 3.1 Receiving Banks 11.5 Advisers' fees and expenses 11.1 Total (UK offers) 60.9 Overseas Offers 7.9 Total (UK and Overseas Offers) 68.8 These costs represent about 2 per cent. of the total proceeds due from the sale of shares and from debt repayable to the Government which together are estimated at £3,430 million. The costs exclude stamp duty and VAT on services provided to the Government, which are not net costs to the Exchequer. They also exclude the costs of the electricity vouchers issued to eligible shareholders in December 1991. Expenditure on the sale in 1990–91 (exclusive of VAT) amounted to £4.6 million in advisers' fees and expenses, and £1.2 million in other sale costs. The costs incurred in earlier years totalled £5.8 million (exclusive of VAT).