Royal Bank of Scotland

Lord Higgins Excerpts

Tuesday 5th June 2018 Lords Chamber

[Lord Bates]

These are matters which we take independent advice on; that is why UK Government Investments is there. It tracks what is happening in the market on a daily basis. I have already mentioned some of the things which are happening. Earlier this month there was a large settlement with the Department of Justice, of £3.6 billion; UKGI also recognised that in April, the bank turned in its first profit in 10 years. Those factors were weighed together, along with the fact that there are very few windows during the course of the year when we can dispose of assets, because of potential conflicts of interest.

[Lord Higgins (Con)]

Does my noble friend agree that this sale does not result in a loss but crystallises it? He just referred to advice he has received; would he say what advice he received about the future likely movement in the share price? He also refers to this being value for money for the taxpayer; could he explain in what way?

[Lord Bates]

This is the fourth time we have undertaken this approach. We did it twice with Lloyds, and this is the second time with RBS. The last time this was done in 2015, the National Audit Office concluded that that sale of shares in RBS,

“was executed as skilfully as could reasonably be expected, and on the basis of the preparation, process and proceeds of the transaction, UKFI”—

now UKGI—

“achieved value for money”.

That was what it looked at, and it will have to justify that advice; others will look at this as well, and we will keep it under review.