Menu
14/05/2012
Half Of Royal Mail London Sorting Office To Be Sold
It has been announced that Royal Mail will sell off half of its flagship sorting office in central London with the transformation of the five-hectare (12-acre) site into flats, netting the postal service up to £1bn.
However the redevelopment at Mount Pleasant on the outskirts of the capital's financial district is unlikely to be completed until after the company's privatisation in about two years time, leading to fears that new owners could asset-strip the business instead of reinvesting.
The high-value land assets, which stretch across the country, also appear to contradict the Royal Mail chief executive Moya Greene's assertions that the company is "balance-sheet insolvent".
Last night the shadow postal affairs minister, Ian Murray MP, called on the government to ensure any land sale profits were ringfenced for reinvestment into the company's modernisation programme.
He said: "There are currently no safeguards as to what might happen to any assets that might be sold. Some venture capitalists will be circling. They may buy it on the cheap, because the government are desperate to get rid of it and get it off their books, and then start selling off prize assets.
"Rather than hundreds of millions of pounds they get from the sale of Mount Pleasant going back into Royal Mail following any sale, it'll go straight into the coffers of a private-equity company, no doubt into a tax haven. What they have to do is make sure with any of these massive asset sales every single penny of it is ringfenced into the modernisation programme."
(H/GK)
However the redevelopment at Mount Pleasant on the outskirts of the capital's financial district is unlikely to be completed until after the company's privatisation in about two years time, leading to fears that new owners could asset-strip the business instead of reinvesting.
The high-value land assets, which stretch across the country, also appear to contradict the Royal Mail chief executive Moya Greene's assertions that the company is "balance-sheet insolvent".
Last night the shadow postal affairs minister, Ian Murray MP, called on the government to ensure any land sale profits were ringfenced for reinvestment into the company's modernisation programme.
He said: "There are currently no safeguards as to what might happen to any assets that might be sold. Some venture capitalists will be circling. They may buy it on the cheap, because the government are desperate to get rid of it and get it off their books, and then start selling off prize assets.
"Rather than hundreds of millions of pounds they get from the sale of Mount Pleasant going back into Royal Mail following any sale, it'll go straight into the coffers of a private-equity company, no doubt into a tax haven. What they have to do is make sure with any of these massive asset sales every single penny of it is ringfenced into the modernisation programme."
(H/GK)
Related UK National News Stories
Click here for the latest headlines.
25 January 2011
Met Police Seize Scam Mail Aimed At UK Victims
In the first operation of its kind, officers from the Metropolitan Police Service's Economic and Specialist Crime Unit (Operation Sterling) took possession of a bulk delivery of scam mail intended for vulnerable victims across the UK and searched and closed five virtual offices used by the scammers.
Met Police Seize Scam Mail Aimed At UK Victims
In the first operation of its kind, officers from the Metropolitan Police Service's Economic and Specialist Crime Unit (Operation Sterling) took possession of a bulk delivery of scam mail intended for vulnerable victims across the UK and searched and closed five virtual offices used by the scammers.
11 July 2014
Taxpayers Lost Out On Royal Mail Sale - MPs
A committee of MPs has claimed that taxpayers "may have lost out" on about £1bn from the undervaluing of Royal Mail. A report by the Business, Innovation and Skills select committee claims that a fear of failure made the government act on bad advice over the Royal Mail stock market flotation.
Taxpayers Lost Out On Royal Mail Sale - MPs
A committee of MPs has claimed that taxpayers "may have lost out" on about £1bn from the undervaluing of Royal Mail. A report by the Business, Innovation and Skills select committee claims that a fear of failure made the government act on bad advice over the Royal Mail stock market flotation.
01 April 2014
Royal Mail Sale Price Was Too Cautious - NAO
By floating Royal Mail on the Stock Exchange within this Parliament, the Government achieved its primary objective, according to the National Audit Office (NAO).
Royal Mail Sale Price Was Too Cautious - NAO
By floating Royal Mail on the Stock Exchange within this Parliament, the Government achieved its primary objective, according to the National Audit Office (NAO).
27 September 2013
Govt Announce Royal Mail Sale By Mid-October
The government have announced that shares in Royal Mail will be sold before 15 October, ahead of any possible strike action by postal staff. With the company valued at £2.6bn to £3.3bn, the Department for Business announced that it will be listed on the London Stock Exchange next month.
Govt Announce Royal Mail Sale By Mid-October
The government have announced that shares in Royal Mail will be sold before 15 October, ahead of any possible strike action by postal staff. With the company valued at £2.6bn to £3.3bn, the Department for Business announced that it will be listed on the London Stock Exchange next month.
10 September 2010
Royal Mail Faces Privatisation Or Sale
The Government is set to go ahead with plans to privatise or sell Royal mail, it has been announced. Business Secretary Vince Cable made the decision following the updated recommendations from businessman Richard Hooper, who previously published a report on the maintenance of Royal Mail in December 2008.
Royal Mail Faces Privatisation Or Sale
The Government is set to go ahead with plans to privatise or sell Royal mail, it has been announced. Business Secretary Vince Cable made the decision following the updated recommendations from businessman Richard Hooper, who previously published a report on the maintenance of Royal Mail in December 2008.
-
Northern Ireland WeatherToday:Cloudy with longer spells of rain during the morning, this rain heavy at times. Generally brighter in the afternoon, but with scattered and at times heavy showers. Maximum temperature 14 °C.Tonight:A mainly dry evening and night with isolated showers dying out and some longer clear spells. Then it will cloud over towards morning with some heavy showers. Minimum temperature 7 °C.
