Ikea 'Regrets' Using Forced Prison Labour

Ikea says it "deeply regrets" the use of forced prison labour by suppliers in communist East Germany more than two decades ago.

The Swedish furniture giant apologised after commissioning a report into claims political prisoners worked in factories making its products in the 1960s and 70s.

The company says it never condoned the use of forced labour but the report showed it failed to properly vet how its suppliers were operating.

The report concludes that Ikea managers "were aware of the possibility that political prisoners would be used in the production of Ikea products in the former GDR".

"We deeply regret that this could happen," said Jeanette Skjelmose, an Ikea manager.

"The use of political prisoners for manufacturing was at no point accepted by Ikea."

But she added: "At the time we didn't have the well-developed control system that we have today and we clearly did too little to prevent such production methods."

Ikea commissioned accountants Ernst & Young to look into claims aired by a Swedish TV documentary in June but first raised by a human rights group in 1982.

Rainer Wagner, chairman of the victims' group UOKG, said Ikea was just one of many companies that used forced prison labour in East Germany.

"Ikea is only the tip of the iceberg," he told The Associated Press in an interview earlier this week.

Wagner said he hoped that Ikea and others would consider compensating former prisoners, many of whom carry psychological and physical scars.

"Ikea has taken the lead on this, for which we are very grateful," he told a news conference in Berlin, where the report was presented.

Peter Betzel, the head of Ikea Germany, said the company would continue to support efforts to investigate the use of prisoners in East Germany in future.

11.46 | 0 komentar | Read More

Exclusive: Santander UK Plots Jersey Sale

The British arm of the giant banking group Santander is reviewing the future of its Jersey-based private banking arm days after rival HSBC was accused of using its business there to provide accounts to convicted criminals.

I have learned that Santander UK has begun sounding out prospective buyers of Santander Private Banking Jersey, a business it inherited from its takeover of Abbey in 2004.

The unit manages approximately £4bn of deposits and tens of thousands of customers, according to insiders. The Spanish-owned lender has hired Gleacher Shacklock, an advisory firm, to gauge the appetite of potential bidders for its Jersey division.

People close to the situation said that Santander UK had not committed to a sale, but was exploring a series of options that included changing the structure of the business or retaining it in its current form.

It had previously conducted a similar exercise for its Isle of Man private banking division and elected to retain the unit, people close to the bank said.

Potential buyers of the division could include the owners of other large private banking businesses such as Investec or Kleinwort Benson.

Earlier this month, HSBC found itself at the centre of a new controversy over compliance standards when it emerged that a number of individuals with criminal links were customers of its Jersey-based operation.

A list containing thousands of names had been provided to HM Revenue & Customs by a whistle-blower, dealing a further blow to HSBC just days after it was forced to hike the potential bill for breaching US anti-money laundering rules by £500m.

Santander UK declined to comment.

11.46 | 0 komentar | Read More

RBS And Lloyds TSB 'May Cost Taxpayer £66bn'

More than £66bn of taxpayers' money invested in RBS and Lloyds TSB may never be recovered, MPs have warned.

The Commons Public Accounts Committee (PAC), warned that lessons needed to be learned from the sale of Northern Rock - and applied to decisions concerning any future sale of the banks "with value to the taxpayer taking precedence over speed of exit".

The MPs, who are charged with monitoring Government financial affairs, said that the Treasury made a series of costly mistakes in its handling of Northern Rock, which had to be taken into public ownership in 2008.

Just two bidders were interested in taking it over, sparking fears that the two remaining state-backed banks, RBS and Lloyds, will fail to be sold for a profit.

Auditors earlier this year estimated that losses on the Northern Rock rescue would amount to £2bn. That figure includes the loss of about £480m on the sale of Northern Rock Plc to Virgin Money, owned by Sir Richard Branson, last year.

The estimated losses were highlighted in a report in May by the National Audit Office (NAO) into the nationalisation of the bank in 2009 and its subsequent part sale.

Northern Rock Plc was sold to Virgin Money, owned by Sir Richard Branson

The report criticised then Chancellor Alistair Darling for failing to look at the full consequences to the taxpayer.

Labour MP Margaret Hodge, who chairs the PAC committee, said: "The lack of competition does not fill us with confidence that the taxpayer will make a profit on the sale of the two banks which remain in public ownership, RBS and Lloyds.

"There is a risk that the £66bn invested in RBS and Lloyds may never be recovered.

"It is vital that the final decisions on the wholly owned banks are made with value to the taxpayer taking precedence over speed of exit.

"This will not be the last banking crisis, and the next one is likely to be different. The Treasury must ensure it retains the right staff with the right skills to understand the risks and respond effectively.

"It needs to learn the lessons from the creation and sale of Northern Rock and make sure that these are applied in future, including to any sale of RBS and Lloyds."

The run on deposits at Northern Rock in September 2007 was one of the pivotal moments in the financial crash.

After nationalisation, the bank was split into a mortgage lending and savings arm, Northern Rock plc, and Northern Rock (Asset Management), which held its bad debt.

The move was supposed to generate lending but it fell well short of its £15bn target, reaching just £9.1bn.

MP Margaret Hodge says the £66bn invested in RBS and Lloyds may be lost

The Treasury has accepted its part in a "monumental collective failure", according to the report.

It has now set up a dedicated team, UK Financial Investments (UKFI), to manage taxpayer shares in banks.

Earlier this year the Treasury's most senior official, Sir Nicholas Macpherson admitted the taxpayer lost out because of five months of "drift" as the crisis unfolded.

A spokesman for the Treasury said the decision to nationalise Northern Rock in 2008 was taken in the interest of financial stability, and that the sale of Northern Rock plc to Virgin Money last year represented "good value for money for the taxpayer, and has helped increase high-street competition".

A Treasury aide added: "RBS and Lloyds have made good progress over the last two years and our goal remains the same: To get the best possible value for taxpayers."

Matthew Sinclair, chief executive of the TaxPayers' Alliance, said: "This report on the expected cost of the Northern Rock fiasco will come as a devastating blow for taxpayers who are already carrying a huge loss from the Government's stake in RBS."

11.46 | 0 komentar | Read More

Fuel Price Misery: AA Demands Action

The AA has accused ministers of failing drivers and businesses by failing to clamp down on what is sees as unfair fuel prices.

The motoring group says while average unleaded prices have gone down from 138.95p a litre in mid October to 135.08p - with diesel dropping from 143.74p to 141.89p - motorists are still being short-changed.

It believes the fall in wholesale petrol prices across Europe should have knocked UK pump prices down by between 10p and 11p a litre instead of by an average 4p.

Despite the signs that the Chancellor is poised to postpone the planned fuel duty rise of 3p a litre due in January, the AA said drivers were facing a series of pressures including a "postcode lottery" in fuel prices.

It found that motorists in one area can be charged as much as 5p a litre more than drivers a few miles away.

AA president Edmund King said: "The Government momentarily had a grip of this monster when the previous Transport Secretary (Justine Greening) called in the industry to agree wholesale price transparency.

"This initiative stalled when the Office of Fair Trading (OFT) called for information on road fuel pricing - to which the industry has responded by pumping up wholesale prices and then not passing on cost savings in a timely fashion.

"The average UK domestic energy bill is £1,252 but the cost of fuel for the average car consuming 1,200 litres a year is over £1,500.

"This week the Government said it was going to tackle high gas and electricity bills, yet lets drivers and businesses down by not reacting swiftly to runaway wholesale and pump prices."

Earlier this week, Treasury Economic Secretary Sajid Javid said the Government understood the pressures facing households and was determined to help with the cost of living.

He said: "The Government is doing all it can to help hard-working families with the cost of living and putting money back into their pockets.

"Action on fuel duty is part of this. Fuel duty is currently 20% lower in real terms compared to its peak in March 2000 and 7% lower compared to May 2010."

11.46 | 0 komentar | Read More

John Lewis Boss Urges Action On Foreign Firm Tax

The managing director of retail chain John Lewis has become the first leader of a British business to call on the Government to examine the way foreign multinationals pay tax in the UK.

Andy Street told Jeff Randall Live exclusively that the Treasury needs to do more to prevent the likes of online retailer Amazon "destroying the UK tax base" and potentially putting British companies out of business.

The comments by Mr Street come amid mounting concern about the tax policies of big international firms in the UK.

This week, Amazon, alongside Google and Starbucks, came under fire from MPs when it appeared before the Public Accounts Committee.

Mr Street said: "If you actually improve your business by investing ... you have got less money to invest if you are giving 27% of your profits to the Exchequer than, clearly, if you are domiciled in a tax haven and you've got much more.

"They (Amazon) will out-invest and ultimately out-trade us and that means there will not be a tax base in the UK.

"I do think it's an issue that needs to be examined."

Mr Street said the question centres on determining whether earnings made in a particular country are to be taxed in that country.

"Exactly how that happens I don't know, but that's the principle that needs to be examined," he said.

Asked whether the Treasury should address the Amazon question, Mr Street replied: "I think it should look at exactly what's happening, yes."

Amazon said it used Luxembourg as a base for its European operations because of the favourable tax rate there.

Andrew Cecil, the online retailer's public policy director, said the Luxembourg business' turnover in 2011 was £7.3bn yet it paid taxes of just £6.4m.

11.46 | 0 komentar | Read More

Credit Card Insurer Close To FSA Deal

CPP, one of Britain's biggest credit card protection providers, is poised to reach a settlement with regulators that could safeguard its future.

I understand that CPP is on the verge of announcing that the Financial Services Authority (FSA) has agreed to drop its probe into the company in return for a binding agreement on a multi-million pound compensation pot for customers.

The FSA has been investigating CPP for months over allegations that it mis-sold products such as identity theft cover, potentially to thousands of consumers.

People close to the situation said that a statement confirming the provisional end of the regulator's probe could come as soon as this week.

A binding deal would require commitments from the banks through which CPP policies were sold to stump up hefty compensation bills.

I have learned that some of Britain's major banks are continuing to oppose a settlement on terms recommended by the FSA on the grounds that they would be financially disproportionate to their involvement with CPP.

The credit card insurer disclosed earlier this month that it had received a takeover approach from the American company behind the rival Sentinel brand.

CPP's impending agreement with the regulator follows a string of other mis-selling scandals affecting British banks, including those relating to payment protection insurance and interest rate swaps.

Santander UK, which recently made a substantial provision for misconduct-related payments understood to include CPP, was a major sales channel for its policies.

CPP has put aside tens of millions of pounds for customer compensation, although the final liability of the entire banking industry will be significantly higher.

CPP and the FSA refused to comment.

11.46 | 0 komentar | Read More

PM Ditches Banker Trade Envoys In Shake-Up

By Mark Kleinman, City Editor

Two of the figures most closely-associated with the reputational crisis at Britain's banks are being quietly dropped as international flag-bearers for British business.

Sir Victor Blank, architect of the disastrous merger of Lloyds TSB and HBOS in 2008, and Marcus Agius, who stepped down as chairman of Barclays following its £290m fine for Libor-fixing, are to end their roles as British Business Ambassadors, I have learned.

People close to the situation said that Lord Marland, the Government minister who chairs the Business Ambassadors programme, had written to some of the members during the last few weeks, including Sir Victor, who resigned as Lloyds Banking Group's chairman in 2009, to inform them that their services were no longer required.

Insiders said the Business Ambassadors were being "refreshed" to focus on people who are serving as chairmen or chief executives. Those who retire from full-time roles with companies would be asked to step down a year later, these people said, meaning that Mr Agius would probably relinquish his role in 12 months' time.

The ambassadorial initiative was launched two years ago during a trade mission to China and South Korea led by David Cameron and was designed to promote trade with key overseas markets.

Ambassadors' duties include lobbying to remove barriers to market access or leading events for smaller companies during overseas visits, briefing ministers on key business priorities and contributing to government dialogues with fast-growing markets including Brazil, China and India.

Some people familiar with the working of the initiative said it had been largely ineffectual, with some of the Ambassadors using the status of the role principally to promote their own companies, rather than wider British economic interests.

A spokeswoman for UK Trade & Investment (UKTI), the trade promotion agency, confirmed that a number of the original Business Ambassadors were not being retained following the end of their two-year term.

In addition to Sir Victor, the list of those unveiled in 2010 who are no longer involved in the programme includes Sir David Brewer, a former Lord Mayor of London, Lord Brittan, former trade adviser to Mr Cameron, Larry Hirst, former chairman of IBM in Europe, Baroness Hogg, chairman of the Financial Reporting Council, Paul Skinner, ex-chairman of Rio Tinto, and Bob Wigley, the chairman of Hibu, the directories publisher which used to trade as Yell.

"Appointments for Business Ambassadors are reviewed as a matter of course every two years or at the end of a political term," the UKTI spokeswoman said.

"Business Ambassadors should occupy a senior executive role, and on ceasing such a position there will be a 12-month transition period, after which they will step down from membership of the group.

"We would like to thank all those who have stepped down for their hard work in promoting UK excellence overseas."

Among those who are continuing as Business Ambassadors beyond their initial two-year term are Lord Patten, the under-fire chairman of the BBC Trust, Dick Olver, chairman of BAE Systems, the defence contractor, and Lord Browne, the former BP chairman who is now a partner at the private equity group Riverstone Holdings.

Mr Cameron has also appointed several new members of the programme, including Lucian Grainge, the British boss of Universal Music Group, and Paul Walsh, chief executive of Diageo.

On Monday night, the Prime Minister confirmed Sky News reports that he is appointing a group of parliamentarians to serve as trade envoys focused on specific trading partners.

11.46 | 0 komentar | Read More

Gas Prices: Watchdogs Probe Fixing Claims

Downing Street has urged the Financial Services Authority (FSA) and Ofgem to speedily investigate a whistleblower's claim that Britain's wholesale gas market has been frequently manipulated by energy companies.

The allegations, revealed by The Guardian, suggest the £300bn market has been fixed in a way similar to bank fiddling of the Libor interest rate.

The FSA, the City watchdog, said: "We can confirm that we have received information in relation to the physical gas market and will be analysing that material."

Ofgem, the energy regulator, said it had also received information relating to trading in the gas market and is looking into the issue.

The allegations come with the energy sector already under fire after major energy suppliers announced inflation-busting price rises.

It is understood the Treasury and the Department for Environment were alerted to the market manipulation claims by Ofgem and the FSA on Monday.

Energy Secretary Ed Davey said: "I am extremely concerned about these allegations and will be keeping in close touch with the regulators while they get to the bottom of this."

Ed Davey said he was "extremely concerned"

An Ofgem spokesman said: "In preparing for full implementation of new EU legislation (Remit) to tackle market abuse, we will consider carefully any evidence of market abuse that is brought to our attention, as well as scope for action under all our other powers.

"Ofgem has already activated its established procedures to review the information we have received."

UK energy companies EDF Energy, NPower, SSE, ScottishPower, E.On and British Gas have all denied any involvement.

The whistleblower, Seth Freedman, works as a price reporter for ICIS Heren, a company responsible for setting so-called benchmark prices.

Mr Freedman raised the alarm after identifying what he believed to be attempts to distort the prices reported by the company.

ICIS said in a statement that it had "detected some unusual trading activity" on the British wholesale gas market on September 28, which it reported to Ofgem in October.

"The cause of the trading pattern, which involved a series of deals done below the prevailing market trend, has not yet been established," an ICIS spokesman said.

"ICIS welcomes the seriousness with which the regulator has so far responded to this information and we have provided all the evidence at our disposal to help the regulator determine what happened."

It is believed that on September 28 prices went down by about 0.4%.

Experts suggested that alleged manipulation may have been an attempt to maximise profit on an earlier trade position.

Shadow Energy Secretary Caroline Flint said: "These are very concerning reports which, if true, suggest shocking behaviour in the energy market that should be dealt with strongly."

The UK's biggest energy supply company, Centrica which is the parent firm to British Gas, said in a statement: "Centrica's traders are prohibited from providing price information to price reporting agencies.

"It's important to stress that the wholesale gas market has more than 50 participants, not just energy supply companies, handling hundreds of trades every day.

"It is in everyone's interests that there is a well-functioning and orderly wholesale energy market."

RWE npower also commented: "We were not involved in any of the trades which we understand are under investigation. We would be happy to support any  regulatory investigation."

11.46 | 0 komentar | Read More

Gas Prices: Watchdogs Probe Fixing Claims

The Financial Services Authority (FSA) and Ofgem are investigating claims by a whistleblower that Britain's wholesale gas market has been frequently manipulated by energy companies.

The allegations, revealed by the Guardian newspaper, suggest the £300bn market has been fixed in a way similar to the banks' fiddling of the Libor interest rate.

The FSA, the City watchdog, said: "We can confirm that we have received information in relation to the physical gas market and will be analysing that material."

Ofgem, the energy regulator, said it had also received information relating to trading in the gas market and is looking into the issue.

The allegations come as the energy sector is already under fire after major energy suppliers announced imposed inflation-busting price rises.

It is understood the Treasury and the Department for Environment were alerted to the market manipulation claims by Ofgem and the FSA on Monday.

Energy Secretary Ed Davey said: "I am extremely concerned about these allegations and will be keeping in close touch with the regulators while they get to the bottom of this."

Ed Davey said he was "extremely concerned"

Mr Davey is expected to make a statement to MPs on Tuesday afternoon.

An Ofgem spokesman said: "In preparing for full implementation of new EU legislation (Remit) to tackle market abuse, we will consider carefully any evidence of market abuse that is brought to our attention as well as scope for action under all our other powers.

"Ofgem has already activated its established procedures to review the information we have received."

UK energy companies EDF Energy, NPower, SSE, ScottishPower, E.On and British Gas have all denied any involvement.

The whistleblower, Seth Freedman, works as a price reporter for ICIS Heren, a company responsible for setting so-called benchmark prices.

Mr Freedman raised the alarm after identifying what he believed to be attempts to distort the prices reported by the company.

ICIS said in a statement that it has "detected some unusual trading activity on the British wholesale gas market on September 28 2012", which it reported to Ofgem in October.

"The cause of the trading pattern, which involved a series of deals done below the prevailing market trend, has not yet been established," an ICIS spokesman said.

"ICIS welcomes the seriousness with which the regulator has so far responded to this information and we have provided all the evidence at our disposal to help the regulator determine what happened."

It is believed that on September 28 prices went down by about 0.4%.

Shadow energy secretary Caroline Flint said: "These are very concerning reports which, if true, suggest shocking behaviour in the energy market that should be dealt with strongly."

11.46 | 0 komentar | Read More

Workers To Be Able To Ask For Flexible Hours

By Gerard Tubb, Sky Correspondent

Every employee in the country is to be given the right to ask for flexible working hours as the Government tries to get more unemployed women into work.

Nick Clegg, the Deputy Prime Minister, believes that enabling relatives and friends of working parents to alter their working patterns will boost the economy.

The Government estimates around a million women are effectively locked out of employment because of problems balancing work and childcare.

The plans to allow anyone to ask for flexible hours are an extension of the rights introduced in 2009 for parents of children aged 16 and under.

A study last year of eligible parents showed 28% of women and 17% of men had asked to change their work patterns in the previous two years, with 80 to 90% of requests accepted.

At Odyssey Systems on Teesside, a telecommunications company with 30 employees, management says it has helped parents to change working hours, but extending the scheme to everyone will be a burden.

Sales director Christine Gilbert said: "We're still here because we think about customers first.

"To say that everybody in the whole company has to have flexible working is just going to be a massive managerial nightmare."

Adam Marshall, director of policy at the British Chambers of Commerce believes the new proposals could cause "unnecessary friction" in the workplace and " unrealistic expectations about the level of flexibility most businesses will be able to accommodate".

But the TUC welcomed the proposals, with General Secretary Brendan Barber describing them as common sense.

He said: "These reforms will make life easier for millions of working parents.

"Businesses will also benefit from a more engaged workforce and a larger pool of people to recruit from."

The entitlement to ask for flexible hours will be introduced in 2014 at the earliest and employers will have to provide good reason for refusing a request.

11.46 | 0 komentar | Read More

Greece Passes 2013 Austerity Budget

Greek lawmakers have approved the country's 2013 austerity budget involving fresh spending cuts.

The budget passed by a 167-128 vote in the 300-member Parliament.

It came days after a separate bill of deep spending cuts and tax hikes for the next two years squeaked through with a narrow majority following severe disagreements among the three parties in the governing coalition.

Prime Minister Antonis Samaras pledged that the spending cuts will be the last Greeks have to endure.

"Just four days ago, we voted the most sweeping reforms ever in Greece," he said.

"The sacrifices (in the earlier bill and the budget) will be the last. Provided, of course, we implement all we have legislated.

"Greece has done what it was asked to do and now is the time for the creditors to make good on their commitments."

Athens says that with the passage of the two bills, the next loan instalment, worth 31.5bn euros, should be disbursed. Without it, the government has said it will run out of cash on Friday, when 5bn euros worth of treasury bills mature.

Finance ministers from the 17-nation eurozone are meeting in Brussels later today, with Greece high on the agenda.

However, German finance minister Wolfgang Schaeuble has indicated it is unlikely that the ministers will decide on the disbursement at that meeting.

"We all... want to help Greece, but we won't be put under pressure," Mr Schaeuble told the  newspaper Welt am Sonntag.

Mr Schaeuble said the so-called troika of debt inspectors likely won't deliver their report on Greece's reform program by Monday. The creditors also want to see what the debt inspectors have to say about Greece's debt sustainability.

But speaking minutes before the vote, Mr Samaras pledged the bailout funds would be disbursed "on time".

Finance minister Yannis Stournaras also stressed the precariousness of Greece's cash reserves, with the treasury bills due on Friday.

"Without the help of the European Central Bank, the refunding of these treasury bills from the banking system will lead the private sector to complete suffocation," Mr Stournaras said.

Disbursement of the next installment is essential "because the state's available funds are marginal, although better than expected because the 2012 budget is being executed better than expected," he said, adding that the funds are needed to pay salaries and pensions, as well as for the import of medicines, fuel and food.

Greece is mired in a deep recession heading into its sixth year, with more than a quarter of Greeks unemployed.

Battered by a mountain of debt and a gaping budget deficit, Greece has been relying on international bailout loans from other eurozone countries and the International Monetary Fund since May 2010.

11.46 | 0 komentar | Read More

Fuel Duty: Chancellor Osborne Under Pressure

Chancellor George Osborne is facing increasing pressure to abandon the Government's controversial 3p-a-litre increase in fuel duty planned for January.

Labour are calling on the Government in a Commons vote this afternoon to delay the tax hike until at least next April, claiming families and businesses are in desperate need of some good news from the Exchequer.

Shadow chief Ssecretary to the Treasury Rachel Reeves said: "With our economy so fragile and prices still rising faster than wages, it would be wrong to go ahead with another tax rise on families and businesses.

"To boost our flatlining economy, Labour has already called for a temporary VAT cut which would take 3p off a litre of fuel. But if ministers won't do this, the very least they could do is axe January's fuel duty rise at least until April.

"And they could pay for this by clamping down on known tax avoidance loopholes, like the one used by some employment agencies to falsely inflate expenses."

Labour had hoped some campaigning Tory backbenchers would support its motion and rebel against the Government.

But Robert Halfon MP, who has led the campaign against increasing fuel duty, said he would not vote against the Government until he had seen whether Mr

Osborne responds to mounting concerns in the Autumn Statement, due on December 5.

He said: "The cost of fuel is the number one issue, that's why I am campaigning on it. I have had discussions with various people and it is my view that the Government is in strong listening mode.

"If I didn't believe that I would make a point and go in to the lobby with Labour."

The campaign group FairFuelUK previously said it believed the tax hike could will raise only £800m, compared to Treasury projections that it would bring in £1.5bn. It could also cost as many as 35,000 jobs, it said.

The group will be campaigning at parliament today ahead of the debate and vote in the Commons.

Its spokesman, broadcaster Quentin Willson, said: "The momentum building up behind FairFuelUK's call to see this damaging 3p rise scrapped is becoming unstoppable.

"The Treasury appears to be listening. We welcome Labour pushing on this issue. Consumers are currently paying an eye-watering 80p-per-litre in combined fuel duty and VAT.

"This is socially unjust and adding another 3p in tax doesn't make sense for economic recovery and deficit reduction."

11.46 | 0 komentar | Read More

Exclusive: Royal Mail To Deliver Float

By Mark Kleinman, City Editor

The Government is to begin sounding out City investors about their appetite to buy shares in Royal Mail ahead of a potential flotation of the postal service.

I have learned that ministers and the Shareholder Executive, the body which manages state-owned assets, have sanctioned a preliminary roadshow of major City institutions to begin in the new year.

The Government will wait until Royal Mail's Christmas trading performance is clear before commencing discussions with prospective investors.

On Tuesday, Royal Mail will unveil half-year results which are expected to show continued progress in restructuring the core UK letters division, which has seen tens of thousands of jobs axed in an attempt to secure the company's survival.

A decline in letter volumes accelerated by the explosion of the internet has only been partially offset by the growth in Royal Mail's parcels business.

Moya Greene, the Canadian chief executive of Royal Mail, is likely to confirm the plans for initial talks with City investors alongside the results.

A privatisation of Royal Mail would be arguably the most significant privatisation of a UK asset since John Major sold the railways during the 1990s.

Analysts say that a restructured Royal Mail could be worth as much as £4bn, although that figure is likely to be at the upper end of the range that a flotation could attract.

Ms Greene is also likely to reaffirm a ministerial commitment to make shares available to Royal Mail employees as well as the public.

A flotation is viewed in Whitehall as a more attractive option than an outright sale of the company because of the shortage of trade buyers and the political difficulties of negotiating a takeover by a financial investor such as a private equity firm.

Michael Fallon, the business minister, is taking a hands-on role in discussions about the potential sell-off.

Barclays is advising the board of Royal Mail, which is chaired by Donald Brydon, a leading City figure, with UBS advising the Government.

Royal Mail's finances have been knocked into shape by hiving off the company's historic pension deficit onto the taxpayer. The regulatory regime dictating stamp prices and other areas of its operations have also been loosened by Ofcom.

Royal Mail declined to comment.

11.46 | 0 komentar | Read More

Chancellor Told To Halt Petrol Price Hike

Chancellor George Osborne is under renewed pressure to abandon a planned increase in fuel duty, amid warnings that the rising price of petrol was putting household budgets under unprecedented pressure.

As MPs prepare to vote on Monday on the planned 3p a litre increase due in January, the consumer organisation Which? said more people than ever before were being forced to cut back on motoring costs.

It said its latest polling found a record 85% of people expressed fears about rising fuel prices - a nine point increase since July. 
Those saying they would cut back on motoring costs rose seven points to 39% -another record high - while one in 10 said they had had to dig into their savings to cover their motoring costs.

Overall, one in three people said they were finding it difficult to live on their current income, with 33% also cutting back spending on the essentials last month. Getting on for half  - 44% - said they were planning to cut back on food and groceries in the coming months.

Which? said the figures showed 8.7 million households curbed their spending on essentials last month, while 6.4 million households dipped into their savings to cover their outgoings.

Which? executive director Richard Lloyd said: "Rising fuel prices are the number one consumer worry and people are already telling us they're having to cut back and dip into savings just to get by.

"On the back of inflation-busting energy bill rises and increasing food prices, consumers can little afford another hit on their household budget. We're calling on the Government to think again about their plans to increase fuel duty in January.

"The forthcoming Autumn Statement must focus on measures that will help put money back in the pockets of consumers, because the economic recovery is at risk if we don't increase consumer confidence."

For Labour, shadow treasury minister Cathy Jamieson said: "Families, pensioners and businesses are still feeling the squeeze. Labour will vote on Monday for a delay in this fuel duty increase at least until next April."

A Treasury spokesman said: "The Government recognises that the rising price of petrol is a significant part of households' day-to-day spending.

"Since coming to office the Government has listened to the concerns of motorists about high pump prices and acted. Fuel is now 10p a litre lower than under the previous government's plans."

:: Pollsters Populus interviewed 2,100 UK adults on behalf of Which? online between October 26 and 28.

11.46 | 0 komentar | Read More