§ Sir Michael ShersbyTo ask the Chancellor of the Duchy of Lancaster (1) what percentage of the value of the consignments of educational stationery sent by Her Majesty's Stationery Office to Uzbekistan has so far been recovered; how long it will take on the basis of current sales to recover the remaining payments due to the office; and what steps he has taken to ensure that there will be no loss resulting from this business; [40452]
(2) if he will publish details of the current situation and projection for Her Majesty's Stationery Office's stationery trade with Uzbekistan; and what estimate he has made of how much of the money owing to the office he expects to recoup. [40451]
§ Mr. Freeman[holding answer 14 October 1996]: The original sales value of the 10 consignments for Uzbekistan was £6.5 million. Prior to privatisation on 30 September, HMSO had received £1.6 million from its trading with Uzbekistan, £1.5 million of which was reported to the Committee on Public Accounts by the then chief executive of HMSO on 10 June 1996. This fully covers the sales value of the first three consignments and amounts to nearly 25 per cent. of the sales value of all 10 consignments.
HMSO signed, in early June, a new contract with Uztoshkitob—the Uzbekistan Republic Wholesale and Retail Association of the State Publishing Committee—aimed at maximising potential receipts from the sale in Uztoshkitob's retail outlets of the remaining goods. Payment is dependent on the rate at which the goods are sold.
The return due from retail sales during August and September amounted to approximately £200,000, but conversion to hard currency is precluded by general bank order. All bidders for HMSO were made aware of the details of HMSO's trading with Uzbekistan: the payments so far received, stocks in the UK and abroad, the contract terms and potential receipts. The successful bidder took over the stationery office as a going concern including all the stocks and debtors of the business.
907WThe HMSO privatisation was in the form of a share sale rather than an asset sale and therefore it is not possible to identify the value placed by the new owner on the Uzbekistan stocks, contract and potential receipts. The sale of HMSO represents value for money for the taxpayer taking account of all assets and liabilities involved. Realisation of future payments from Uztoshkitob is now a matter for the Stationery Office Ltd.