Royal Mail WILL be allowed to fall into foreign hands,

[TrueBlueTerrier]

Royal Mail WILL be allowed to fall into foreign hands, Government confirms

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A RULING from Brussels means the Government would be powerless to prevent a privatised Royal Mail falling into the hands of a foreign investor, Express Online has learnt.

EU competition law means the Government is unable to include a “golden share” in the proposed £3billion sell-off that would block a rival postal service such as Germany’s giant £24billion Deutsche Post swooping in and taking it over.

Critics fear this could result in a repeat of what happened to the UK's energy and water providers which are now mostly foreign-owned after being should off by the state.

A spokesman from the Department for Business, Innovation and Skills confirmed to Express Online that Royal Mail could one day be run by foreign managers - but added Royal Mail itself also had the chance to buy up other international rivals.

He said: "Under EU law it is not legally possible to hold a golden share.

"Having said that, what people should be aware of is the universal service, that is, one price goes anywhere six days a week, is protected under the 2011 Postal Service Act whether Royal Mail is owned publicly or privately.

The Government has been accused of selling off the 'family silver'

"It is possible to send something from Land's End to John O'Groats or Lambeth to Peckham all for the same price. That's what people care about and that's not going to change."

Asked if there was a possibility of Royal Mail falling into the hands of a major player such as Deutsche Post, he said: "You have to remember that once owned by the Great British Public it is just as likely that Royal Mail could swallow up Deutsche Post, a Belgium bank or anyone else. It works both ways.”

Deutsche Post was privatised in 2000 and has since bought up a number of other delivery firms including Exel DHL.

Today's announcement was met with anger from the Communications Workers Union.

A spokeswoman said: “We understand that shares are open for anyone to buy so yes it’s entirely possible we could see a foreign company buying out significant stakes in Royal Mail. This has been a British company for over 300 years and it’s about to be cast out to an uncertain future.

“We fear the universal service obligation (USO) will disappear under privatisation. What private company will be interested in delivering to rural villages at vast expense when they can concentrate their efforts on maximising profit in urban areas?

"The Postal Services Act has get-out clauses based on affordability which would allow a private company to reduce the USO. The economics of it – especially for a company wanting to pay out dividends for shareholders – will be the end of the USO.

"Royal Mail is more than just a money-making company and it should remain in public hands.”

Ukip leader Nigel Farage said it was another example of Brussels meddling.

He said:"We are bound by EU rules which forced us to sell off the profitable parts of Royal Mail and now stops us keeping it in British ownership.

"These rules should be made by MPs in Westminster alone, not bureaucrats in Brussels."

"It's the EU rules on foreign companies being allowed to buy into our postal services which resulted in the profitable sectors of Royal Mail being skimmed off by other companies. This has resulted in the closure of post offices up and down the country and ultimately, the privatisation of Royal Mail.

"I simply don't believe assurances that the universal postal service is safe."

The Government has been accused of "selling off the family silver" as it announced the move today, that will see Royal Mail floated on the stock mark in the coming weeks.

Members of the public will be able to apply for shares - at a minimum of £750 - as well as institutional investors.

[pants123]

Germany did not win the wars, but they own all of Europe now... but without the guns..

Dirty slimy Germans.

[Shambles]

Germany did not win the wars, but they own all of Europe now... but without the guns..

Dirty slimy Germans.

Nine....Shrewd motherf#ckers is all!

When people begin to realise in the world that after every War, there has to be Evolution....

Brains over Braun

[UnhappyGremlin]

Aren't we already in foreign hands?