Friday, 18 October 2013

Liberal Democrats on Royal Mail Privatisation

We do not believe Royal Mail shares were undervalued. As Vince Cable said in the run up to privatisation, what matters is where the price settles. He said:  "You get an enormous amount of froth and speculation in the aftermath of a big IPO [initial public offering] of this kind. The bulk of the shares have gone to long-term institutional investors, stable investors, some overseas investors, but mainly British pension funds and insurance companies who are there for the long term. The objective of the exercise, which fits in with what we want for the Royal Mail, is to make sure it has stable, long-term investors."

Liberal Democrats have succeeded where Governments of the past have failed. Our plans will give 150,000 Royal Mail employees free shares so they can share in the future success of the company. This is the largest employee share scheme of any major privatisation for almost 30 years.

The Post Office is not for sale. Unlike Labour, there will be no closure programme under this Government. We are providing funding of £1.34bn over four years to maintain a network of at least 11,500 branches across the UK.