Sunday, 20 April 2014

The botched sale of royal mail leaves Britain hundreds of miillions of pounds worse off

This week the National Audit Office (NAO) released a damning report into David Cameron's botched fire sale of Royal Mail. The report revealed that the taxpayer was short-changed by hundreds of millions of pounds after the share price rose by 38 per cent on the first day of trading, and 70 per cent over the following six months.

Labour opposed the privatisation and warned the government that it was drastically undervaluing Royal Mail’s property assets. It is now clear that ministers could have raised far more money than it did and the public has lost out thanks to their incompetence.

The government rushed the sale through, got poor value for money and the British public has been left short-changed by £750 million.

David Cameron’s botched fire sale shows once again how he stands up for the wrong people. He sold off Royal Mail on the cheap to try to help plug the financial hole he made in the British economy. With ordinary people in Haslingden and Hyndburn facing a cost of living crisis, it’s time for David Cameron to explain why he is asking hard-working people to pay more, while he is prepared to sell Royal Mail for less.