The below Parliamentary question was asked by Ian Murray on 2014-04-07.
To ask the Secretary of State for Business, Innovation and Skills, what category of investor Lansdowne Partners was with regard to the sale of Royal Mail.
Michael Fallon
All investors in Royal Mail – whether individuals or institutions – have a reasonable expectation of privacy: therefore we have not disclosed the names of specific investors and their involvement in the IPO process.
The below Parliamentary question was asked by Ian Murray on 2014-04-10.
To ask the Secretary of State for Business, Innovation and Skills, who made the decisions and on what basis were the decisions made on how many shares would go to each priority investor, each institutional investor and each retail investor in respect of the privatisation of Royal Mail.
Michael Fallon
The Government set the overall allocation policy with the aim of getting the right balance between longer-term, stable investors, retail investors and shorter-term investors who provide liquidity in the market.
Allocations were made to a number of institutions who in the early stages of engagement were willing to place non-binding orders despite the risks attached to the IPO such as the industrial relations situation. These investors gave us confidence that there was sufficient demand to proceed with the IPO.
We had nearly three-quarters of a million retail applications so their allocations were scaled back as they were for institutional investors. Given this high demand, Ministers decided to prioritise smaller investors and put in place a cut-off above £10,000 and give everyone below that the same number of shares. Around 95% of retail investors were allocated shares.
The below Parliamentary question was asked by Ian Murray on 2014-04-10.
To ask Mr Chancellor of the Exchequer, what recent estimate he has made of how much the reduction in the additional rate of income tax to 45 per cent will be worth each year for a person earning £1 million a year.
Mr David Gauke
I refer the hon. Gentleman to the answer I gave today to the hon. Member for Sefton Central (Bill Esterson).
The below Parliamentary question was asked by Ian Murray on 2014-04-28.
To ask the Secretary of State for Business, Innovation and Skills, when the stabilisation period in respect of the privatisation of Royal Mail, as detailed in the engagement letter between his Department and the underwriting banks, ends; and how that period has been defined.
Michael Fallon
The stabilisation period, also known as a "greenshoe" or "over-allotment" option, is a market-standard provision that allows the Initial Public Offering’s (IPO) stabilisation manager to provide share price stabilisation (if required) for up to 30 days post-commencement of conditional dealings. In the case of the Royal Mail, the stabilisation manager was UBS and the stabilisation period ended on 8 November.
In the engagement letter, the payment of the discretionary fee was linked to the ending of the stabilisation period. However, we informed the banks involved that a decision would not be taken in the timeframe set out in the engagement letter given the volatility of the Royal Mail share price after the IPO.
We have not set a rigid timetable for the decision on the payment of the discretionary fee which remains unpaid.
The below Parliamentary question was asked by Ian Murray on 2014-04-28.
To ask the Secretary of State for Business, Innovation and Skills, what the default rate has been on each of the Government’s export guarantee funds since May 2010.
Michael Fallon
UK Export Finance (UKEF) supports UK exports, principally through the provision of guarantees to banks extending loans to overseas buyers and insurance to UK exporters against the risk of non-payment. From 1 May 2010 to 31 March 2014, the percentage of guarantees and insurance policies issued by UKEF that have subsequently defaulted resulting in a claim being paid, or where a claim is currently under examination, is 0.2%.
Given the tenor of transactions that UKEF typically supports, which can be up to 15 years, an in-year default rate does not give a clear indicator of the performance of UKEF’s portfolio. In accordance with the financial objectives and risk measures agreed with HM Treasury, UKEF measures the Expected Loss of its portfolio. Expected Loss is the statistical estimate of the amount of UKEF’s contingent liability which could be expected to turn into claims that are irrecoverable. Full details of UKEF’s performance and risk management can be found in its Annual Report and Account which is available in the libraries of the House.
The below Parliamentary question was asked by Ian Murray on 2014-06-10.
To ask the Secretary of State for Business, Innovation and Skills, when he plans to publish the Government’s framework for action on corporate responsibility.
Jenny Willott
The intention to publish a framework for action on corporate responsibility was set out in the call for views on corporate responsibility (CR) which ran during 2013. The response to the call for views was published on 28 March 2014 and this notes that the voluntary, evolving and diverse nature of CR means success relies on a business led approach. We received 152 views from a wide range of stakeholders and, where relevant, these will inform future Government action.
The below Parliamentary question was asked by Ian Murray on 2014-06-12.
To ask the Secretary of State for Business, Innovation and Skills, what discussions he has had with Royal Mail Group, Ofcom or officials or Ministers in other departments about invoking section 44(9) and section 44(10) of the Postal Services Act 2011 to ask Ofcom to report on the sustainability of the Universal Service Obligation.
Jenny Willott
None.
Under the Postal Services Act 2011, Parliament gave Ofcom the primary duty to secure the ongoing provision of the universal service and to this end Ofcom must also have regard for the provision of a universal service to be financially sustainable.
Ofcom monitors market developments, including any impacts on Royal Mail’s performance and operational efficiency, and has the regulatory powers and tools to intervene if the sustainability of the universal service is ever at risk.
As part of its monitoring regime, Ofcom publishes a report every year on Royal Mail’s performance and the postal market, and this includes an update on the financial sustainability of the universal service. More information about Ofcom’s regulatory regime can be found on its website (www.ofcom.org.uk).
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The below Parliamentary question was asked by Ian Murray on 2014-06-18.
To ask the Secretary of State for Business, Innovation and Skills, with reference to the Answer of 1 May 2014, Official Report, column 782W, on Royal Mail, what link was established in the engagement letter between the payment of the discretionary fee and the ending of the stabilisation period; and what targets or deadlines were set in the letter.
Michael Fallon
The engagement letter between the Department for Business, Innovation and Skills and the syndicate of banks involved in the initial public offering indicated that the payment of the discretionary fee would be determined 10 days after the end of the stabilisation period and paid 5 days after that.
As I said in my previous answer (1 May 2014, Official Report, column 782W), we informed the banks that a decision would not be taken in the timeframe set out in the engagement letter given the volatility of the Royal Mail share price after the IPO. The share price remains volatile.
We have not set any timetable for the decision.
The below Parliamentary question was asked by Ian Murray on 2014-06-18.
To ask the Secretary of State for Business, Innovation and Skills, how many complaints about payment of the National Minimum Wage (a) were made, (b) were resolved within the required Departmental timescales and (c) were not resolved within the required Departmental timescales in 2013-14.
Jenny Willott
The Government is committed to increasing compliance with minimum wage legislation and effective enforcement of it. Everyone who is entitled to the minimum wage should receive it. HM Revenue & Customs (HMRC) enforces the National Minimum Wage (NMW) on behalf of BIS.
HMRC investigates every complaint made to the Pay and Work Rights helpline and deals with each NMW complaint on a case-by-case basis. The timescale for each case is dependent on a number of factors:
In 2013/14, HMRC investigated 1631 cases. Of these, 1084 cases were closed; 565 cases were closed within 120 days; 519 cases were closed outside of 120 days and 547 cases are still open and yet to be concluded.
Please note that investigations may not commence and be completed in the same financial year.
The below Parliamentary question was asked by Ian Murray on 2014-06-18.
To ask the Secretary of State for Business, Innovation and Skills, what the target timescale is for resolving complaints regarding non-payment of the National Minimum Wage.
Jenny Willott
The Government is committed to increasing compliance with minimum wage legislation and effective enforcement of it. Everyone who is entitled to the minimum wage should receive it. HM Revenue & Customs (HMRC) enforces the National Minimum Wage (NMW) on behalf of BIS.
HMRC investigates every complaint made to the Pay and Work Rights helpline and deals with each NMW complaint on a case-by-case basis. The timescale for each case is dependent on a number of factors:
In 2013/14, HMRC investigated 1631 cases. Of these, 1084 cases were closed; 565 cases were closed within 120 days; 519 cases were closed outside of 120 days and 547 cases are still open and yet to be concluded.
Please note that investigations may not commence and be completed in the same financial year.