They Haven't A Clue But Still You Vote Them In....

[baw 4,360]

Once again the government prove they couldn't survive in the real world. These clowns have never had real jobs.

 

Rise: Royal Mail is now worth £5.6billion, £2.3billion more than its initial value

 

Taxpayers had a raw deal from the sale of Royal Mail because it was priced too cheaply, the National Audit Office will say today.

 

The Governments spending watchdog said the controversial privatisation was marked by deep caution, the price of which was borne by the taxpayer.

 

In October, the Royal Mail was floated on the stock market at a price of £3.3billion. Today it is worth £5.6billion a gap of £2.3billion.

 

On the first day of trading, about £750million flowed to the new shareholders mainly City investors who benefited from an instant 38 per cent share price rise.

 

The NAO concludes: The Department for Business could have achieved better value for the taxpayer.

 

Last night Margaret Hodge MP, chairman of the Commons Public Accounts Committee, accused the Department for Business of having had no clue what it was doing.

 

Describing the sale as a second-class performance, she said: It is clear to me the Department for Business under-sold the taxpayer when it privatised Royal Mail.

 

But Business Minister Michael Fallon dismissed the criticism, saying: Hindsight is a wonderful thing.

 

He added: We were cautious to avoid the risk of this transaction falling over. If we had put it on the market at a much higher price, we would have been left with a fatally damaged Royal Mail.

 

Todays NAO report says the Government met its primary objective of selling the postal giant before the election in May 2015.

 

But it also lays bare the extent to which the City hit the jackpot from the sale and damningly concludes the Government should cut its reliance on City advisers before any future flotations.

 

When the shares went on the market, private investors were allowed to buy a maximum of £750 worth, but an exclusive group of 16 of the Citys biggest names were given priority status and allowed to buy up to £46million worth each.

 

HOW THE CITY CASHED IN

 

 

Business Secretary Vince Cable said he was looking for long-term stability from 'the right kind of investor community' when he floated Royal Mail

When the Royal Mail floated last year, Business Secretary Vince Cable said he was looking for long-term stability from the right kind of investor community.

 

As a result, 16 of the Citys investment giants were singled out from the 796 which wanted to buy shares and given favoured status.

 

This group was awarded a much larger tranche of shares about £46million worth each while 506 received nothing and the rest between £600,000 and £6million worth.

 

But few of the priority investors believed to include Legal & General, Threadneedle, BlackRock, and Fidelity have been as long-term in their approach as Mr Cable had hoped.

 

The NAO said: Almost half of the shares allocated to them had been sold within weeks.

 

In one example, Standard Life bought nearly 12million shares in October, but now owns just 118,480.

 

Speaking to MPs in October, Business Secretary Vince Cable justified the arrangement by saying he wanted to attract the right kind of investor community, which was about long-termism.

 

But todays report reveals many of the priority investors then rushed to sell their shares, making themselves a fortune as the share price rocketed from £3.30 to more than £6.

 

Of the 16, six had sold 100 per cent of their shares within the first few weeks of trading, according to the NAO.

 

Yesterday Mr Cable insisted: Achieving the highest price possible at any cost and whatever the risk was never the aim of the sale.

 

The report concludes there was a real risk of a failed sale attached to pushing the price too high.

 

Amyas Morse, head of the NAO, said the Department for Business had been very keen to sell Royal Mail in order to prevent the company becoming a burden on the taxpayer.

 

But he added: Its approach, however, was marked by deep caution, the price of which was borne by the taxpayer.

 

In order to sell the business, the NAO said Royal Mails £8.6billion pension black hole had also been given to the taxpayer. While it has received £28.8billion of assets from the pension fund, it has also been left with £37.4billion of liabilities, which are the pension promises made to Royal Mails workers.

 

Last year, it emerged that UBS, one of the banks which ran the sale on behalf of the Government, had considered increasing the price at which the shares would be offered from £3.30 to £3.50 just days before the flotation.

 

But it then decided the move was too risky, and warned Mr Cable against increasing the share price advice which he followed.

 

William Rucker, chief executive of Lazard, the investment bank which advised the Government on the sale, insisted it was the maximum price achievable at the time.

 

Mr Rucker said: There was no clear ability to go above £3.30 at that particular time.

 

Last night, Royal Mail shares were worth £5.63 each.

[TOMO 24,838]

Feck sake,,,I'm not reading all that,,,,what's the jist of what your saying,,,,,,,,we are being fecked over by government ?

[baw 4,360]

Feck sake,,,I'm not reading all that,,,,what's the jist of what your saying,,,,,,,,we are being fecked over by government ?

Lol, we know you can't read pretty much the government sold the Royal Mail far too cheap.

[SirRichardCecil 70]

deja vu every business the government runs loses lots of money then when its sold ends of making lots and lots of money

Edited April 1, 2014 by SirRichardCecil

[TOMO 24,838]

Well why not just write that then,,,,,you just wanted to sound knowledgable didn't you?

[paulus 26]

more money for the big investors and can we all guess who the biggest investors were

[TOMO 24,838]

more money for the big investors and can we all guess who the biggest investors were

Yeh and I bet they pay feck all in tax.....

[paulus 26]

 

more money for the big investors and can we all guess who the biggest investors were

Yeh and I bet they pay feck all in tax.....

 

1 in 5 of the largest companies in the country have never paid any tax and all legal through loop holes written into law by the same people who are employed by both the companies and the government to advise on tax talk about job creation

[baw 4,360]

Well why not just write that then,,,,,you just wanted to sound knowledgable didn't you?

I copied and pasted it you Toby

[TOMO 24,838]

 

 

more money for the big investors and can we all guess who the biggest investors were

 

Yeh and I bet they pay feck all in tax.....

1 in 5 of the largest companies in the country have never paid any tax and all legal through loop holes written into law by the same people who are employed by both the companies and the government to advise on tax talk about job creation

I watched somthing on telly a week or two back,,,,,,and they were saying,,,if they lowered tax to 17%. but everybody piad it ,,,big business ect ,,,everybody ,,,,,there would be plenty in the pot,,,and that after lowering tax,,,,mad ain't it

[TOMO 24,838]

 

Well why not just write that then,,,,,you just wanted to sound knowledgable didn't you?

I copied and pasted it you Toby

Flecks sake,,,I knew that soppy,,,lol

[baw 4,360]

[paulus 26]

 

 

 

more money for the big investors and can we all guess who the biggest investors were

Yeh and I bet they pay feck all in tax.....

1 in 5 of the largest companies in the country have never paid any tax and all legal through loop holes written into law by the same people who are employed by both the companies and the government to advise on tax talk about job creation

I watched somthing on telly a week or two back,,,,,,and they were saying,,,if they lowered tax to 17%. but everybody piad it ,,,big business ect ,,,everybody ,,,,,there would be plenty in the pot,,,and that after lowering tax,,,,mad ain't it

 

mad has hatters we are

[WILF 44,182]

Re: Royal Mail, that's not all the numbers though is it ........what you need to add in the continued saving to the taxpayer to get the real value don't you

[baw 4,360]

Re: Royal Mail, that's not all the numbers though is it ........what you need to add in the continued saving to the taxpayer to get the real value don't you

We aren't talking about what the company makes or losses per annum wilf, we are talking about its value when it was sold. It was grossly undervalued which has been proved. You see, this is the problem, these clowns can shit on us all day long and there are still folk willing them for more. Nothing funnier than folk.