Press release: Royal Mail – investor’s gains are consumer’s losses Posted on May 29, 2013 by Martin Forsythe Commenting on reports that Royal Mail is looking to raise a syndicated bank credit facility of £1.5bn ahead of privatisation, Save Our Royal Mail campaign director Mario Dunn said: “It is ridiculous for Ministers to argue that Royal Mail has to be privatised in order for it to be able to raise capital in this way. “Royal Mail can raise a cheaper credit line facility in the public sector and not have to pass the costs onto customers. Satisfying both banks and investor’s needs will come at a heavy price to users.” The government aims to raise around £2bn for the sale of Royal Mail but this will be virtually wiped out overnight by the credit facility the business is seeking. Dunn said: “Royal Mail is seeking to flex its muscles to prove it can meet investor’s needs. Yet what investor’s gain, consumers lose through higher prices and reduced services in rural areas. “Ministers have yet to explain exactly why Royal Mail cannot enjoy access to private capital in the public sector, other than some vague suggestion that it will mean reduced investment elsewhere. “It cannot be beyond the wit and wisdom of Treasury Ministers to devise a method to ensure Royal Mail lending is ring fenced. If the banks are willing to lend it £1.5bn it must be because they know they will get a return on it. Royal Mail can look after itself financially.”
Posted on: Fri, 28 Jun 2013 08:46:46 +0000
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