Royal Bank of Scotland

Adrian Bailey Excerpts

Thursday 11th June 2015 Commons Chamber

[Harriett Baldwin]

My hon. Friend is absolutely right to highlight a very important part of the Governor of the Bank of England’s announcement last night—the “Fair and Effective Markets Review”; bringing a range of fixed income, currency and commodity markets within the regulatory perimeter; and aspiring to be not only the most competitive country in the world in which to locate a financial services business, but the one with the best, cleanest and most competitive regulatory system.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I join others in welcoming the hon. Lady to her new role. The sale price of Royal Mail shares last night— £5 per share—totally vindicates the cross-party conclusion of the former Business, Innovation and Skills Committee that Royal Mail shares were underpriced in the original sale. One reason was the over-reliance on institutional investors and the under-participation of the public. Will the Minister assure us that that lesson will be learned in the sale of RBS?

[Harriett Baldwin]

I have to disagree with the hon. Gentleman. A long time has passed since the initial flotation, during which the markets have done a lot better. The markets have welcomed the re-election of a strong Conservative Government who have turned the economy around and made huge improvements in our public finances. It is largely due to that that the price is so much higher.