§ Mr. David EvansTo ask the Secretary of State for the Environment what changes he proposes to make to the cash limit on the Property Services Agency services vote in 1992–93.
§ Mr. RedwoodSubject to parliamentary approval of the necessary supplementary estimate, the cash limt for class VIII, vote 12 will be increased by £55,109,000 from £128,885,000 to £183,994,000. The increase will not constitute a claim on the Reserve as it will be netted of the proceeds from the Government's privatisation programme.
The estimate is sought to secure provision, mainly for the subscription of shares, so that the sale of PSA Projects may proceed as planned in December 1992. The cash asset reflects the currently estimated net liabilities of PSA Projects at end November 1992. These are £5,331,000 greater than those on which all prospective purchasers based their bids in the knowledge that, in the event of any under-or over-estimation, the sale consideration would be adjusted pound for pound. The impact is to increase the negative consideration payable at completion to £55,109,000. A completion statement will be prepared to quantify the actual liabilities at the date of sale and the sale consideration will be subject to further adjustment for any 960W difference between the estimated and actual net liabilities whether in favour of the vendor or purchaser. Parliament will be advised of the final position at that time.
The consideration will also be subject to adjustment depending on the number of transferred staff in the business a year after the sale.
Expenditure on advisors fees incurred in preparing for the BM sales and in completing the Projects sale may be subject to revision in a spring supplementary estimate depending on progress of work and bills tendered.
The increase in this cash limit is within the forecast outturn for the planning total included in the Chancellor's autumn statement today.