Oral Answers to Questions

Clive Efford Excerpts

Thursday 24th October 2013 Commons Chamber

[Matthew Hancock]

I certainly will. Local enterprise partnerships are led by local businesses and, in large part, respond extremely effectively to the needs of local businesses. In some areas of the country, they are almost wholly reflective of the rural economy—that is true of East Anglia, which is largely rural. I take on board the point that that does not always happen everywhere, and I will ensure that it does.

[Clive Efford (Eltham) (Lab)]

13. What assessment he has made of the value for money for the public purse of the recent sale of shares in Royal Mail.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

Our overarching objective is to put Royal Mail in a position to be able to deliver the universal service on a long-term and sustainable basis. When considering value for money, we will assess the sale proceeds together with the long-term value of the taxpayers’ retained stake in the business and the reduced risk to the taxpayer of a stable company with access to private sources of capital.

[Clive Efford]

The shares were sold at £3.30 each and this morning they are selling at £5.32. Does the Minister agree that the taxpayer got a raw deal in the share sale, and does he accept full responsibility?

[Michael Fallon]

It is not unusual to see some share price volatility in the immediate aftermath of a sale. Let us be clear: this sale was popular, oversubscribed and successful. When the Labour Government tried to sell Royal Mail, they failed.