Government accused of ‘fleecing’ the taxpayer as Royal...

Government accused of ‘fleecing’ the taxpayer as Royal Mail profits rise

22 May 2014

Britain’s largest union accused the government of ‘fleecing’ taxpayers over the controversy ridden Royal Mail sale as the company saw operating profits rise to £671 million from £598 million a year ago.

The sale saw 16 investors including Lazard Asset Management, the investment arm of the government’s independent adviser on the deal given preferential treatment. Lazard asset management sold its shares and made an £8 million profit for its clients in the first week of Royal Mail’s listing on the stock exchange.

Commenting, Brian Scott the Unite officer representing Royal Mail managers said: “The taxpayer has been fleeced. Instead of these profits flowing into the Treasury's coffers to pay for schools and nurses it's flowing into the pockets of shareholders, some of which enjoyed 'mates rates' when Royal Mail was sold off on the cheap.

“Unite members in Royal Mail are paying the price with job losses and the uncertainty is set continue with a massive £106 million set aside to cover ‘transformational costs’.

“We need full transparency of the sale and for ministers to come clean over their gentleman’s agreements and any winks and nods they gave to investors.”  

Unite represents over 7,000 Royal Mail managers.


For further information please contact Unite head of media and campaigns Alex Flynn on 07967 665869.

Twitter: @unitetheunion Facebook: unitetheunion1

Notes to editors

•         Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.