We're selling our stake in Eurostar

  Forum Editor 13:55 13 Oct 14
Locked

is that a good thing or not? We own 40% of the business, and it only makes around £50 million in total, so if we can get £20 billion for our share it has to be a good thing, doesn't it?

Let some foreign buyer have the worry, eh?

  Flak999 14:07 13 Oct 14

We won't get £20 billion for our share! That figure relates to the total of all government asserts to be sold by the year 2020

The chancellor said: "As part of our aim to achieve £20bn from assets sales by 2020, the sale proceeds would make an important contribution to the task of reducing the public sector debt."

We could also save another £50 billion by not proceeding with the folly of HS2!

  spuds 15:11 13 Oct 14

Does it really matter.

I expect not, until prices rises for the average discount fare traveller, because the new investor or equity fund wants to get their returns back in quick fashion.

Perhaps Her Majesty the Queen might be interested. I see she or at least her business empire are in the market for purchasing good investments.

  Forum Editor 16:40 13 Oct 14

Flak999

Well spotted. I took the figure from a Press release, and posted in a rush. What's that old adage - think twice, cut once?

Make that figure around £300 million.

  rickf 17:53 13 Oct 14

Short sighted strategy! Give them a chance they will sell everything with this lot. That said Bliar started selling off our utilities, then Brownie sold mour gold reserves. Why not sale the UK and the lease it back!!

  john bunyan 18:57 13 Oct 14

If we get 40% 0f the £50 million profit, our share is £20 million on an investment of £300 million - say 6.7%. Seems a good return; I believe we pay about £42 billion interest on a National debt debt of £900 billion ( about 4.4%) . It seems therefore,a poor decision to sell. Not as bad as selling our gold at $300 an ounce , I suppose. We need something much more radical to make a dent in the £900 billion debt - huge savings or big tax rises. No wonder Ed forgot to mention it at his Conference.

  Forum Editor 19:08 13 Oct 14

"If we get 40% 0f the £50 million profit, our share is £20 million on an investment of £300 million - say 6.7%. Seems a good return"

It is a good return, especially as it's tax free to the treasury. Not only that, but is likely to rise. An awful lot of time and effort went into Eurostar, and it has been worth it in my opinion. I can walk ten minutes to my North London tube station, get on a train, get out at Kings Cross, get on a Eurostar train, and get out in Paris, or Brussels. In the summer months I can get a train direct from Kings Cross to the South of France - no changing and no hassle. It's a brilliant service, and I believe we are mad to sell our slice of it, just to give this government the satisfaction of saying it has 'saved' us £300 million towards boosting the economy.

Margaret Thatcher must be turning in her grave.

  john bunyan 19:13 13 Oct 14

Quote from the Guardian:" The company made a profit of £18.6m in 2013, of which the Treasury received £7.4m. That was up on the £6.5m from profits of £16.3m in 2012"

Our return on the Eurostar investment was therefore only about 2.4% , so if it reduces our debt on which we pay 4.4% then it makes sense , after all.

  sunnystaines 19:42 13 Oct 14

why not reduce foriegn aid and pull out of these middle east conflicts the americans have more than enough airpowerwithout us wasting money we cannot afford.

  cream. 22:31 13 Oct 14

"Margaret Thatcher must be turning in her grave."

British Petroleum October 1979

British Aerospace February 1981

Cable & Wireless October 1981

Amersham International February 1982

National Freight Corporation February 1982

Britoil November 1982

Associated British Ports February 1983

Enterprise Oil July 1984

Jaguar August 1984

British Telecommunications December 1984

British Shipbuilders 1985 onwards

British Gas December 1986

British Airways February 1987

Rolls-Royce May 1987

BAA July 1987

British Steel December 1988

Water December 1989

Electricity 1990

Yes, she liked to hang on to British assets.

  Quickbeam 08:51 14 Oct 14

"We could also save another £50 billion by not proceeding with the folly of HS2!"

The Victorian railway builders face that kind of narrow minded shortsightedness, as were the post war motorway builders... it's good job they were all ignored at the time!

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