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Nick Clegg: We got ‘value for money’ from Royal Mail sale

Deputy Prime Minister Nick Clegg says the Government got value for money from its sale of Royal Mail.

Speaking at Prime Minister’s Questions today while Prime Minister David Cameron was on a trade mission in China, Clegg said he is taking a long-term view.

The Royal Mail was privatised last month at 330p but its price have rocketed 75 per cent to more than 580p today.

Business secretary Vince Cable, who had ministerial responsibility for the sale, has described the increase as “froth”.

Business, Innovation and Skills select committee chair Adrian Bailey has criticised the Government’s pricing of the sale.

Clegg was today asked by an MP whether the Government had secured “value for money” with its privatisation.

He said: “Our judgment is yes. It would be easy to make a call according to the price of the market on any given day.

“However, as on so many issues, we are determined to take a long-term view and not score short-term political points.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Boy is that man out of touch he is. Never thought we would see the day when assets were sold of so cheaply after the gold fiasco

  2. To . @ 2.03. I am surprised at your comment. You have to remember these people are carrer politicians. They have no concept of the real world or business and make monumental decisions that are catestrophic (in some instances) but never ever think they have “got it wrong”. These people, most of whom have been recipients of a class A education, are supposedly very intelligent but have no clue about reality. It really does prove that a good eduction is not always worth the paper the exam results have been printed on.
    My own view is that noone should be allowed to start into politics (at any level) unless they are at least 35 years of age with a minimum of 10 years working in a management position in a SME or big company so they have an idea how to run or spend a budget and to get real value for money.

  3. The dirty secret is that they pretty much have to err on the side of cheapness. Imagine if the share price had gone down on the first day of trading, and all the small investors – and the post office workers – had lost money, having been suckered into thinking that they were going to get an instant, free return. Cue outraged headlines about the Tories fleecing Miss Miggins of her savings.

  4. @ DOT – you obviously dont remember British Gas being sold off? Or did Sid not tell you? Or any of the other parts of our country that were sold off for short term gains!

    @Marty – I almost entirely agree with you, apart from i think that actually if anyone WANTS to go into politics they should be automatically disallowed from doing so. it should be similar to the jury system, everyone and anyone should be called up to do a stint in the political arena at some time and there should be no ‘professional’ politicians. Lets face it, Mr Joe Mugger from Scumsville could not screw up this country any worse than Tony ‘Smiler’ Blair or any other feckless politician, but the difference would be that Mr Mugger, after doing his 4 year ‘tour of duty; would return to his day job and wouldn’t be doing the after dinner speech tour earning millions off the backs of people he has screwed over.

    But in response to the point of the article, leave the poor loves alone, they have no idea what they are doing. Of course the government got the best price they could, but they were damned if they did and they were damned if they didn’t. If they priced it too high, no one would have bought the shares and everyone would be crying it was wrong but if they priced it any lower everyone would have being it is too low. BUT the big difference is, the Royal Mail are now making a profit. It could have been worse the government could have been selling shares in Facebook – never made a profit – overpriced and the share price dropped like a stone!

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