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Speculators' Hunger For Profit Is Wrecking Royal Mail, Says CWU

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wandle
Posts: 944
Joined: 25 Feb 2011, 17:17
Gender: Male

Speculators' Hunger For Profit Is Wrecking Royal Mail, Says CWU

Post by wandle »

The pension deficit occurred because the sole shareholder of the business, the Government, who controlled the purse-strings of the state-run entity known as Royal Mail decided that the pension fund was in surplus, and took a short-sighted opportunity to stop paying-in employers' pension contributions, to fund tax-cuts and other state spending.
So, upon privatisation, I say it's only right and proper that the government swallowed the outstanding deficit at that time. After all, it was government action that created it ! :evil/mad
Lincox
EX ROYAL MAIL
Posts: 3485
Joined: 09 Jan 2008, 18:07
Gender: Male

Speculators' Hunger For Profit Is Wrecking Royal Mail, Says CWU

Post by Lincox »

What we must all remember Wandle is that the Government does not own debt, it is the taxpayers of this country. I agree that it was the governments of the time that made the decision to stop the employer contributions but the government acts on behalf of all of us and in this respect they made a big bloomer on our behalf.