Human Resources
Conservatives confirm “people’s bonus” proposals
(FT.com) - The Conservatives on Sunday confirmed plans for a “people’s bonus” of discounted shares in part-nationalised banks, prompting accusations that the giveaway was primarily designed to “buy votes”.
George Osborne, shadow chancellor, said a Tory government would attempt to “recapitalise the poor” through a public offering of Royal Bank of Scotland and Lloyds Banking Group shares with “special” terms for small investors.
In an echo of the “Tell Sid” British Gas privatisations of the 1980s when Margaret Thatcher tripled the number of UK shareholders, Mr Osborne said: “The bankers have had their bonuses. We want a people’s bank bonus for the people’s money that was put into these organisations.”
Labour immediately dismissed the proposal as a “headline grabbing incoherence”. Lord Mandelson, first secretary, attacked the proposal as a “silly little gimmick” that undercut the Tory message on the urgent need to reduce the deficit.
“What on earth are they doing giving away the shares at a knock down price?” he told the Andrew Marr show.
Given that RBS shares are currently trading around 30 per cent below the government’s break even point, Lord Mandelson said “people can buy shares and wait for them to rise in due course”.
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