Tories propose 'people's bank bonus' in cheap shares

Degenerate

http://news.bbc.co.uk/1/hi/uk_politics/8526665.stm

Where do I start with this one, the Tories have lost it...

1.) We don't need you to sell us shares we already collectively own, George.
2.) The best way to reward taxpayers is to sell at the right time, getting the best price possible, hopefully making a profit and thereby reducing our future tax burden.
3.) By offering a discount, this scheme doesn't represent a reward to the taxpayer, but a transfer of wealth from the whole taxpayer population to those individuals who have cash available to buy shares.
4.) Likewise, how can it be a "reward" to taxpayers when they propose the greatest discount be given to those who pay the least tax? (Not that they'll have the cash to buy shares anyway.)
5.) The only people who will actually benefit from this are those who can easily find a few grand to buy shares. So really it's just another way to reward the better off.

I have to say, the more I see, the more the prospect of a Tory win terrifies me. It would be disastrous for the country to have such an absolute moron as Chancellor.

Jonbvn

Degenerate wrote: »

I have to say, the more I see, the more the prospect of a Tory win terrifies me.

The prospect of another term of GB terrifies me. GB has already clearly demonstrated that he is by far the worst PM in living memory.

BTW, don't take my word for it, it is from a BBC online poll -27000 people agree with me.
http://en.wikipedia.org/wiki/Historical_rankings_of_British_Prime_Ministers

amcluesent

>We don't need you to sell us shares we already collectively own, George.<

Same as BG, BT, BA, British Steel, National Power, Rolls-Royce, etc. etc.

The only difference is that many of those organisations were originally stolen from the rightful owners by the Socialist state.

>The best way to reward taxpayers is to sell at the right time, getting the best price possible<

Yep. Shame Clown didn't think of that when he sold the nation's gold for a pittance, following orders from the EU.

>So really it's just another way to reward the better off.<

Good to see the Tories thinking of the wage earners, we've had enough being bled white by Labour stealth-taxes to feather bed the idle, 'seekers', illegals and chavs in the North.

Degenerate

amcluesent wrote: »

>We don't need you to sell us shares we already collectively own, George.<

Same as BG, BT, BA, British Steel, National Power, Rolls-Royce, etc. etc.

Not quite the same. Although the previous privatizations were arguably sold off on the cheap, they did have sort-of have an excuse that time. As wholly nationalized companies, they didn't have market-determined share prices. Any IPO is liable to be on the cheap side and see the shares quickly gain value. That's the only way to do it when you're dumping a load of shares on the market at a fixed price, if you want them all sold.

The shares Osborne proposes to sell are (except for Northern Rock) in companies that remain publicly traded so have full price discovery. There is no need to dump them all on the market at once, or sell them at a discount. What he is proposing is selling the taxpayer short on the return they are entitled to for their bailout money.

JP45

This looks like another of those ill conceived, headline grabbing proposals that both Labour and the Tories appear to be producing on an almost daily basis (in the run up to the election).

I agree with the OP. Just sell the damn banks at the right time for the right price to ensure the maximum possible return for the taxpayer. There's no obvious need or justification - other than to gain an electoral advantage - to complicate matters by offering discounts to taxpayers to buy shares.

This latest initiative has only added to my concerns over Osborne's fitness as a future Chancellor. Frankly, I'd be much happier if Ken Clarke was the shadow Chancellor.

Fortunately for the Tories, Gordon Brown is a far bigger electoral liability than Osborne, witness the latest revelations about Brown's shameful behaviour towards staff.
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Radiantsoul

I think the shares should be drip fed back into the market, perhaps over a period of decades rather than as quickly as possible so that the increase in supply doesn't unduly reduce the price.

ses6jwg

My grandad made about £100k from his "Tell Sid" shares.

If people don't have enough money to buy any cos they wasted it on 4x4s on finance and plasma screens, fluck em, I'll take em up.

Viper_7

They are not thinking of the "Tax payers" who helped pay out the banks though.
The discounted shares will be given larger discounts for those on benefits and low incomes.

But they never contributed to the bail out (in the form of taxes) in the first place. so it's not giving anything back to the taxpayers it's giving money to those the taxpayers are also supporting anyway.

The tax payers will end up pretty much paying top wack for these giveaway shares and the slice of the cake on offer will be tiny.


If they were given out to only those who could purchase them (the fortunate people with good jobs) then the gap between the affluent and the less well off would increase.

So, yes just a gimmick to get more votes.

BACKFRMTHEEDGE

What a stupid idea:mad:. I don't want everyone getting cheap shares.

I WANT MY MONEY BACK and I want it to clear our deficit!

I want the market to pay a fair price for bank shares and for that money to go back to the Treasury to pay off our debts.

The Tories are desperate to buy votes!:mad:

BACKFRMTHEEDGE

Degenerate wrote: »

What he is proposing is selling the taxpayer short on the return they are entitled to for their bailout money.

and !!!!!! why?:think:

Wookster

What a stupid stupid idea and it comes over as blatant bribery.

Its time for real policies not white noise.