Royal Mail: Pricing of Shares

Lord Dobbs Excerpts

Tuesday 22nd October 2013 Lords Chamber

[Lord Popat]

My Lords, the remaining 30% of shares is being held by the bank. We have an agreement with the Royal Mail that this will not be sold for a period of six months. The sale of shares thereafter will depend on the market circumstances and how the Royal Mail is performing in terms of its business profit and in terms of the cash that the business generates.

[Lord Dobbs (Con)]

My Lords, would my noble friend please spend a moment today celebrating the success of this exceptional privatisation, which has placed the Royal Mail on a footing for the future that was undreamed of four years ago? Would he further express and extend his best wishes not only to the management and employees of Royal Mail but also to their customers and of course their new shareholders, many of whom I suspect are sitting on the Benches opposite?

[Lord Popat]

I thank the noble Lord for those encouraging comments. This sale should be welcomed by all sides of the House. It guarantees that the universal service will remain and helps to provide the funding needed to modernise the Royal Mail. It provides a good solution for the taxpayer, for the Royal Mail employee and for customers. This is about ensuring the long-term success of the Royal Mail and securing the universal service. This privatisation is a positive step. The future of the company is now much brighter than it was. Had we pitched the price higher than £3.30 and it had failed, I am sure that the Benches opposite would have blamed us for the failure. I am glad that it was a great success and I agree with the noble Lord.