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Old 20th November 2002 | 08:16
  #18 (permalink)  
BEXIL160
 
Joined: Jan 2001
Posts: 856
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From: I sell sea shells by the sea shore
Hang on a minute.

Who is the BIGGEST shareholder in NATS? Thats right, the UK government. Like it or not, and they won't, they will still have to shoulder the responsibility if NATS becomes insolvent (if it isn't already).

Makes a bit of a mockery of the PPP doesn't it? One of the governments much touted reasons for going ahead with it was that it would enable NATS to borrow (get shafted?) on the open market. Of course this could have been done without selling ANY part of NATS. Why wasn't it? Treasury "rules" said/say that HMG would have to underwrite any funds borrowed on the open market and this would be reflected in the PSBR. Not good PR for Tony or Gordon. But then arbitrarily changing "rules" doesn't seem to bother them either.

However, since HMG is going to have to underwrite the whole enterprise anyway post PPP, whats the difference? You may well ask. It might have something to do with the £750m the government coffers recieved for the part sale of NATS. Looks good on the balance sheet short term, you see. Long term, well, PPP will have been very bad news for everyone involved. NATS, the airlines, the government and the travelling (tax paying) public.

Rgds BEX
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