Royal Mail

Caroline Lucas Excerpts

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

Yes, it is tied because of the limitations on borrowing possibilities and what many people perceive to be the potential for political intervention. The companies that the hon. Gentleman mentioned—in Austria, Belgium and Germany—all of which are privatised, are indeed highly profitable, and they also invest heavily. They are making deep inroads into the international logistics market and it is time Royal Mail was competing successfully with them.

[Caroline Lucas (Brighton, Pavilion) (Green)]

As the Secretary of State has said, Royal Mail’s performance has gone from strength to strength, so why will the Government not commit to building on what has been achieved and keep it in public ownership, where we can guarantee that future profits will be invested in what is good for Britain, rather than what is good for a few select shareholders?

[Vince Cable]

We are building on the success of the modernisation of the last few years, and I pay tribute to the management and the work force who have made that possible. The one factor that the hon. Lady’s model does not deal with is how a company of that kind raises substantial amounts of capital when it would be in direct competition with schools, hospitals and other bodies that require public sector investment. That is the big inhibition at the moment.