ROYAL MAIL FACES A FINANCIAL CRISIS WRITES VINCE CABLE

[TrueBlueTerrier]

http://stevebeasant.mycouncillor.org.uk ... nce-cable/" onclick="window.open(this.href);return false;

The following article was written by Vince Cable and was published on the Hounslow Chronicle website today.

This week I brought into parliament new legislation to bring private capital into the Royal Mail. I realise this is an ambitious undertaking which previous Labour and Conservative governments tried but failed to deliver.

The Royal Mail is the last of the big nationalised industries and it has suffered from under investment and terrible labour relations (though these have improved under recent modernisation efforts).

It now faces a financial crisis because of an enormous and growing deficit in the pension fund and because its business is declining rapidly due to competition from emails and new delivery businesses. The government cannot plug the financial holes on its own, without private capital. We shall sell shares once the legislation is passed.

Many people worry about the future of the Post Office network which has been shrinking for the last few decades. I was involved in campaigns to stop closure of eight post offices in the Twickenham area. We must stop further collapse of the network. It will not be privatised but my colleagues and I plan to invest substantial sums to modernise it and prevent a new wave of closures.

I want to work closely with postal workers to achieve a good outcome for them as well as consumers and tax payers. I have got to know some of the workers in the sorting offices in Twickenham (now relocated), Teddington and Hampton – and the very helpful and efficient postal staff who deliver my mail. I want them to have a stake in the future of the Royal Mail through a worker share scheme.

One of the responsibilities which has fallen on me since joining the Cabinet is the need to take forward controversial legislation. This is the first.

[motherhubbard]

Tell him to shove his worker share scheme where the sun don't shine.
Give us a decent wage.
Give us decent terms and conditions.
And give us a work culture free from bullying.
Those we need. Shares we don't.

[belle smith]

The Royal Mail is the last of the big nationalised industries and it has suffered from under investment and terrible labour relations (though these have improved under recent modernisation efforts). ie. the union now agree to all RM's demands!

It now faces a financial crisis because of an enormous and growing deficit in the pension fund because.....RM ran a wreckless investment stategy to take a pension holiday.and because its business is declining rapidly due to competition from emails and new delivery businesses. new delivery buisnesses eh i think you mean DSAThe government cannot plug the financial holes on its own, without private capital. We shall sell shares once the legislation is passed.

[Lounge Lizard]

"The Royal Mail has suffered from under investment" - yes, but does he seriously think that anyone taking it over will put more money in than they take out ? or am I missing something ?

[DirtyHarry]

Tell him to shove his worker share scheme where the sun don't shine.
Give us a decent wage.
Give us decent terms and conditions.
And give us a work culture free from bullying.
Those we need. Shares we don't.