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Public ‘short-changed’ in Royal Mail deal - Sheffield MP

Paul Blomfield

Paul Blomfield

Sheffield MP Paul Blomfield has said the Government privatization of Royal Mail was one that even Margaret Thatcher avoided.

He spoke after a highly critical report from the Business, Innovation and Skills committee found that taxpayers lost out on £1bn because the privatisation was underpriced.

Mr Blomfield, a member of the committee, said: “This was a privatization even Margaret Thatcher avoided because of the importance of Royal Mail as a public service.

“This Government rushed in, desperate to privatize, and as a result underpriced the shares and short-changed the public to the tune of a billion pounds. “Through the Government’s incompetence and privatizating zeal the taxpayer has significantly lost out.”

Royal Mail was privatized in October when the government sold 60 per cent of its stake, valuing the company at £3.3bn. Shares jumped by 38 per cent on the first day of trading and valued Royal Mail at 1.4bn more than the sale price last week.

 

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