Labour says Royal Mail privatisation 'botched'
Critics say Royal Mail was undervalued The government "botched" the privatisation of Royal Mail, short-changing taxpayers by hundreds of millions of pounds, Labour has said.
Three months on from privatisation, the share price was trading at 561p at Thursday's close of trade.
The government had said the share price should only be judged after three months and Labour points out it is 70% higher than the original price of 330p.
The government has denied that shares were sold too cheaply.
Labour said Business Secretary Vince Cable had said judgment should be passed on the sale price after three months.
Shadow business secretary Chuka Umunna said the shares has consistently been above 500p ever since the privatisation and added: "Three months later, the Business Secretary's dismissal of the sharp rise in share price as 'froth' has been demolished and increasingly it looks like the taxpayer has been left short-changed at a time when services are being cut and families are struggling with David Cameron's cost of living crisis.
"We know that Vince Cable considered, then rejected, the option of floating Royal Mail at a higher price which would have brought in more cash for taxpayers.
"He still has serious outstanding questions to answer on the price he could have received three months ago in respect of what increasingly looks like a botched privatisation."
Billy Hayes, general secretary of the Communication Workers Union, said taxpayers have been "left with a bad taste as hundreds of millions of pounds have been lost".
"The British public were against the sale of this great public service as consumers and now they know for sure they got a bad deal as taxpayers too."
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