Oral Answers to Questions

Debate between Michael Fabricant and Vince Cable

Thursday 13th June 2013 Commons Chamber

[Kris Hopkins (Keighley) (Con)]

16. What progress he has made on making shares in Royal Mail available to its employees; and if he will make a statement.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

We are designing an employee share scheme that will honour the commitment made by Parliament in 2011 that 10% of Royal Mail shares should be reserved for employees. We are still considering the details, but it is very much the Government’s intention to make the offer attractive to employees, while balancing the overall value for money for the Government and the interests of other stakeholders.

[Michael Fabricant]

John Lewis, under the inspired leadership of Andy Street, who I should declare is a friend of mine, is synonymous with quality and service. Does my right hon. Friend agree that John Lewis, which uses the mutual model, might provide an appropriate model for the privatisation of Royal Mail?

[Vince Cable]

As the hon. Gentleman will know, we are currently considering the way the privatisation proceeds, and we have committed to Parliament that 10% of shares will go to employees. There are different ways of doing that and we have not prejudged exactly how it will occur. I remind the hon. Gentleman that this is the largest worker share ownership in any privatisation that has occurred, and it will be the largest for several decades.