Royal Mail to go private - New information highlighted

[TrueBlueTerrier]

http://www.psnews.com.au/worldpsn2273.html" onclick="window.open(this.href);return false;

The United Kingdom Government-owned Royal Mail is likely to be privatised within two to three years, according to the Minister in charge of the process, Edward Davey.

Mr Davey said the goal would be to get private capital and private disciplines in, as the Royal Mail would not receive any more Treasury funds for reinvestment and would need the ability to borrow commercially.

“We will do that when we think that can be best delivered,” Mr Davey said.

“I would hope and expect it to be within the next two to three years.”

He said the service had a £10bn pension deficit, which the Government would like to see settled before it was sold.

Mr Davey, who is also a former postal consultant, visited Belgium’s La Poste and plans to see Germany’s Deutsche Post to learn from their privatisations.
He said after last year’s dispute over working practices, the big test will be whether privatisation can be pushed through in the face of opposition from the Communication Workers’ Union (CWU) without provoking strikes.

“I don’t expect the CWU to change their fundamental position on the injection of private capital,” Mr Davey said, “but I have found them very constructive when talking about issues like their members’ pensions.”

He said the main factors affecting the viability of the service were the pension deficit, new competitors and the growing use of email.