Government “embarrassed” by privatisation fees

[TrueBlueTerrier]

http://saveourroyalmail.org/2013/05/pre ... -to-banks/" onclick="window.open(this.href);return false;


Minister “doth protest too much”

William Shakespeare may not have been anticipating the privatisation of Ye Olde Royal Mail when he coined the phrase “doth protest too much”.

But in this case it is clear the Minister responsible for selling Royal Mail has got his doublet in a twist by trying to discredit the claims of the Save Our Royal Mail campaign that banks will rake in up to £30m in fees from the sale of Royal Mail.

Save Our Royal Mail Campaign Director, Mario Dunn said:

“Business Minister Michael Fallon has gone out of his way to say our claims are “completely misleading”. Similarly BiS have been contacting news outlets to say that the figures were “pure speculation.”

Yet reports that a number of banks had been appointed to handle the sale on a “reduced” commission rate of 1% are widespread.

Dunn said:

“Our estimates are not misleading. Most analysts anticipate the Royal Mail IPO to be between £2 and £3bn. At the upper end that equates to £30m in fees. That figure may be “speculative” but that does not necessarily mean it is wrong”.

Instead of giving the banks £30m for a sale the public does not want and will inevitably result in higher prices and reduced services in rural areas the government should focus on protecting postal services instead.

Mario Dunn said:

“The government is clearly embarrassed by the millions the taxpayer will have to pay to the banks. That’s why it is going out of its way to deny the truth. If we are wrong then the government should publish the fees the banks will make from this sale.

“Methinks the Minister “doth protest too much”.

Ends –

Editor’s note:

Michael Fallon was writing in the Belfast Telegraph. http://www.belfasttelegraph.co.uk/opini ... 09985.html" onclick="window.open(this.href);return false;