Postal Services Bill

Viscount Eccles Excerpts

Monday 14th March 2011 Lords Chamber

[Lord Lea of Crondall]

If the noble Lord will allow me, it was the Hooper report that said that the most likely presumption of going forward was an IPO, and that was very recent.

[Viscount Eccles]

Yes, it was in 2008, when Hooper gave an update—

[Lord Lea of Crondall]

2010.

[Viscount Eccles]

Hooper said in 2010 that the situation had worsened, although he acknowledged that things were happening at Royal Mail which were a great improvement. The big snag with an IPO is that it does not bring Moya Greene’s £2 billion. The noble Lord, Lord Clarke of Hampstead, would certainly buy some shares, and I might if the price was low enough, but you would not get any part of the £2 billion from either of us.

[Baroness Kramer]

My Lords, does not the dispute that has just taken place make it clear that this House and the other place are not the appropriate organisations for detailed discussions on how to do a disposal of shares? Obviously there are many different views, but this is not the kind of issue that can be put in the Bill. The financial circumstances of the Royal Mail have to be considered, as have the financial markets and the trade buyers that may be available. There will be a wide range of issues. I agree with those who have criticised past sales.