Oral Answers to Questions

Jessica Morden Excerpts

Thursday 10th April 2014 Commons Chamber

[Karl Turner (Kingston upon Hull East) (Lab)]

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

[Jessica Morden (Newport East) (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)]

The National Audit Office’s report on the Royal Mail share sale published last week confirms that we achieved our key objective of achieving the sale and allowing Royal Mail access to the private capital it needs to invest and thrive. It was a successful transaction, raising £2 billion for the Exchequer, and has reduced the risks to the taxpayer of having to provide future financial support to the universal six-day-a-week service.

[Michael Fallon]

More than half the shares allocated to priority investors are still held by those investors, and six of them remain among Royal Mail’s largest shareholders.

[Jessica Morden]

Most people listening to the Minister’s response will think that it was particularly lame, to put it mildly. Can he justify the fact that consumers and businesses have faced hikes of up to 30% in stamp prices, while hundreds of millions of pounds have been squandered because of the Secretary of State’s disastrous decision at a time when families are really struggling?

[Michael Fallon]

Nobody has lost anything. Britain has gained a top-100 company in which 10% of the shares are owned by the staff themselves. Nearly three quarters of a million individual investors also have shares in Royal Mail. We achieved our objective of realising nearly £2 billion of receipts for the Exchequer, ensuring that Royal Mail has been put on a sound commercial footing.