Government spending taxpayers' cash for advertising blitz

[Pinky 1]

Royal Mail privatisation: Government spending taxpayers' cash for advertising blitz promoting sell-off

8 Aug 2013 01:00

The Department for Business has splashed out on an advertising blitz to get the public to buy shares in the postal giant

Taxpayer’ cash will be used to drum up interest in the Government’s sell-off of the Royal Mail.

The Department for Business yesterday confirmed it’s splashed out on an advertising blitz to get the public to buy shares in the postal giant.

Yet it comes amid widespread opposition to privatising the company.

Ministers will be hoping to win people over by plugging a share sale.

An advertising agency, Engine Group, has been hired to promote it, with the taxpayer ultimately picking up the tab.

The Department of Business refused to say how much the contract is worth, however, it is likely to run into hundreds of thousands of pounds.

The public is footing the bill despite Royal Mail making £440million profits last year.

The campaign has been criticised by the Communications Workers Union.

Billy Hayes, CWU general secretary, said: “The Government is splashing taxpayers’ money on a deeply unpopular privatisation programme.

"More than two-thirds of the public are against privatisation – a clear majority in any system.”

The criticism came as the Government launched a drive to get stockbrokers and share dealing firms involved in the Royal Mail’s sell-off.

They will act as intermediaries (earning commission) for the public to buy shares, although people can buy them direct from the Government. Ministers say the public and big investors will get shares on equal terms.

Business Minister Michael Fallon said it was “another step towards our commitment to sell shares in Royal Mail in this financial year”.

He added: “A sale will give Royal Mail the commercial freedom it needs to thrive and to secure the universal postal service.”

A YouGov poll carried out last month showed 67% of the public oppose privatising the Royal Mail with only 20% in support.

Eight out of 10 fear prices will rise and 47% believed the service would get worse.

Julian Hough, a founding partner of Engine, said: “We’re delighted to have been appointed to this highly prestigious piece of business.”

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[pants123]

the government are spending tax payers money on themselves.. the Gadiffi regime comes to mind..

[Brain Fury]

the government are spending tax payers money on themselves.. the Gadiffi regime comes to mind..

Who else's money are they going to spend? It's Government spending on a Government programme.