Huge profits at RM spark calls to end plan to privatise

[TrueBlueTerrier]

Huge profits at Royal Mail spark calls to end plan to privatise

http://news.scotsman.com/uk/Huge-profit ... 5270499.jp" onclick="window.open(this.href);return false;

ROYAL Mail doubled its profits to £321 million despite a fall in the number of letters being posted, new figures showed yesterday,
sparking fresh controversy over the government's plan to part-privatise it.

The postal giant said it had hit its targets for delivering letters on time, and all four of its businesses were in full-year profit for the first time in 20 years.

Unions and pressure groups said the figures proved the government's case for a partial sale had been bust "wide open", while the Royal Mail was urged to scrap a planned pay freeze.

But Business Secretary Lord Mandelson said while the headline profits were in the millions, a doubling of the group's pensions deficit of £6.8 billion confirmed the Royal Mail remained in a "precarious" position.

The controversial Postal Services Bill paving the way for the sale of around a third of the Royal Mail is due to receive its final hearing in the Lords next week before switching in June to the Commons.

Mail volumes fell by 5.5 per cent in the last financial year and are predicted to decline by a further 10 per cent this year due to competition from electronic communications as well as the economic downturn, with every 1 per cent of decline costing £70 million in revenue.

The letters business made an operating profit of £58 million, compared with a £3 million loss the previous year, while post offices made £41 million, turning around a loss of £34 million.

Dave Ward, deputy leader of the Communication Workers Union said: "We feel vindicated by today's results for our position on full public ownership for the company."