Royal Mail Sale

Lord Stoneham of Droxford Excerpts

Wednesday 16th July 2014 Lords Chamber

[Lord Popat]

My Lords, here was a company which prior to privatisation was turning around £9 billion a year. It lost money for a number of years, to the tune of £1 billion. Preceding the era of privatisation it made a £300 million profit, hence we went for the flotation, at the time when there was the real threat of the American debt crisis as well as unions threatening to strike—and each strike day costs roughly £30 million, so a £300 million profit can be wiped out in 10 days. It was a successful flotation, and the Secretary of State has appointed the noble Lord, Lord Myners, to look into how best we can do any future flotations.

[Lord Stoneham of Droxford (LD)]

My Lords, despite the generally successful privatisation of the Royal—

[Noble Lords]

Time!