Taxpayer and Consumer Benefits Of Privatisation of Government Owned Companies in the Long-term?

Tim Cook made this Freedom of Information request to Department for Business, Innovation and Skills

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Department for Business, Innovation and Skills did not have the information requested.

Dear Department for Business, Innovation and Skills,

I would like to know if there have been any studies by the government of the benefit to the consumer and the tax payers of privatisation of nationally owned companies, that were sold on the UK stock market.

I am looking at long-term benefits more than 10 years; hopefully longer, to the tax payer and the consumer?

I would also like to know if the capital gained, if we today's prices sell of "Business" A for X - amount and the income generated would be offset in Z years..

So A National Owned Company Sells for £X pounds but generates £Y income, including inflation...

1.) Was it good value for the tax-payer?
2.) Was it good value for the consumer with lower unit prices?
3.) Was it good value to anyone?

The innovation in the Market of technology must not be allowed to skew the figures. Also the so-called improvement in services as or customer care can be subjective. The tax this can be objective, but again looking to the positive benefits to the tax payer and the consumer as the end result.

My main aim is value in unit cost to the consumer and the tax payer in £... not response times to telephone call, for example.

I believe that this can only be done over a 10 or 20 year model of the markets to see the trends.

I think this would be of great interest to the tax payer and the consumer in the UK market where this has happened to see its benefits.

Did it make things cheaper or more expensive?
Yours faithfully,

Tim Cook

FOI Requests, Department for Business, Innovation and Skills

BIS ref: 13/1496

 
Dear Mr Cook

Thank you for your request for information which was received on 24
October 2013. Your request has been passed on to the appropriate official
at the Department for Business, Innovation and Skills to deal with.

Your request is being dealt with under the terms of the Freedom of
Information Act 2000 and will be responded at the latest by 21
November 2013.

If you have any queries about this email, please contact the information
rights unit at BIS. Please remember to quote the reference number above in
any future communications.

Kind regards,
Information Rights Unit

Information Rights Unit | Department for Business, Innovation & Skills  |
Victoria 3, 5th Floor, 1 Victoria Street, London, SW1H OET|
[1]www.bis.gov.uk

The Department for Business, Innovation and Skills (BIS) is making a
difference by supporting sustained growth and higher skills across the
economy. BIS: working together for growth

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Faull Robert (ShEx), Department for Business, Innovation and Skills

1 Attachment

Mr Cook
 
Please find attached our response to your email below.
 
Rob
Shareholder Executive
Department for Business, Innovation and Skills
1 Victoria Street, London SW1H 0ET
The Department for Business, Innovation and Skills (BIS) is making a
difference by supporting sustained growth and higher skills across the
economy. BIS: working together for growth
 
 

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Tim Cook left an annotation ()

I believe that not knowing the long-term effect of privatisation is amazing.

Build your house of hay..

This is why privatisation should be more scrutinised.

But, the Department did NOT answer, my question but redirected to the Royal Mail which is incorrect.

Dear Faull Robert (ShEx),

You are the Royal Mail, when in my question did I mention the "Royal Mail"?

Not just Royal Mail, but the economic model to make sure it makes sense for privatisation of any nationalised company.

Why is was this redirected from the government now to a private company?

The request is for any information/reports on the analysis of privatisation to the tax-pay in the long-term by the department for business to make sure they did due process to protect the main investor, the tax-payer in sell of nationalised companies in the past, by doing a long-term model.

I can't believe they weren't STUPID enough, not do that!

The Department of Business, surely should have done this?

Please refer to the correct department, how I can complain to the information ombudsmen on you answer to this FOI request? You shouldn't have answered this request at all?

Comment: Not Relevant To this FOI request
But someone should ask how the current investor tax-payer would benefit or not for the sale in the long-term due to tax, profit or cost of the Royal Mail, surely you did this, like any commodity or future assets?

Yours sincerely,

Tim Cook

Faull Robert (ShEx), Department for Business, Innovation and Skills

I am out of the office until 18 November but will be picking up emails from time to time.

If it's urgent you can call me on my mobile (07879 486341) or email James Baugh ([email address]) or Leonie Lambert ([email address]) who may be in the office

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Communications via the GSi may be automatically logged, monitored and/or recorded for legal purposes
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Faull Robert (ShEx), Department for Business, Innovation and Skills

Tim

I should clarify that I do not work for Royal Mail. I work in BIS's Shareholder Executive in the team that worked on the sale of Royal Mail shares. Apologies if this was not clear.

I carried out a trawl within the Shareholder Executive and searches on BIS's filing system and could not find any references to Government studies along the lines you are looking for. I also attempted to see if something had been published by others in Government eg the Treasury but was unable to locate anything.

Rob

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Dear Faull Robert (ShEx),

Thank you, I understand that it was my mistake in not understanding that you were part of the Civil Service(Government)

I appreciate your prompt reply to this question.

I still need this definitively answered that there has been no analysis of the long-term benefits of privatisation for the consumer/taxpayer of a government owned company - EVER?

Just to reiterate, you are saying there is no such publication or implying it has NEVER been done by any government department on such sells-off to measure it perceived to the actual results in the future for the consumer and taxpayer, and the country as a whole.

I also which to know if any were able to search the National Audit Commission's or National Statistics records or other departments that would be involved in such a sell off of a Government owned company on the stock market.

I need this be yes/no answer, before I can close this off.

Thank you for your help.

This is very important.
Yours sincerely,

Tim Cook

Faull Robert (ShEx), Department for Business, Innovation and Skills

Tim

I can only reply for my Department and the answer is that "no" we are not aware of any Government studies as described in your emails. Please note that my attempt to see if other Government Departments had published such information was based on a short internet search only not a formal trawl of Government.

You would have to ask them directly if they have conducted such studies.

Rob

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Dear Faull Robert (ShEx),

Thank you, for a prompt reply, as always.

This is to do with all previous incarnations of your departments, names changes, different governments who have have been responsible for de-nationalizing a company onto the stockmarket?

=====================

The general public has never had the opportunity to see long-performance indicators of de-nationalising a company from a taxpayer's point-of-view or a consumer's point-of-view?

Yes/No, but if No, "amazing" and "staggering", if not asking other questions.

=================

Secondly, can this request for information be transferred to the National Audit Commission to ask if they have any documents or publications on the long-term benefits of floating a Nationalised company on the stockmarket.

Yours sincerely,

Tim Cook

Tim Cook left an annotation ()

Government, long-term analysis and performance indicators of de-nationalizing a company onto the stockmarket.

Faull Robert (ShEx), Department for Business, Innovation and Skills

Tim

My response relates to BIS and its current responsibilities. Under Machinery of Government changes responsibilities move around and Departments were responsibilities has been transferred would hold the relevant records eg energy policy used to be in both DTI and BERR but is now with the Department for Energy and Climate Change.

I suggest that you contact the NAO direct here are their contact details:

Email: [email address]

Tel: 020 7798 7264

Address:

The National Audit Office Library
157-197 Buckingham Palace Road
Victoria
London
SW1W 9SP

Rob

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