Royal Mail: Reorganisation - Written Question

[TrueBlueTerrier]

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Business, Innovation and Skills
Written answers and statements, 3 November 2010

Richard Fuller (Bedford, Conservative)
To ask the Secretary of State for Business, Innovation and Skills whether his Department has discussed with the Communications Workers Union or other employee representatives (a) conversion of Royal Mail to a mutual society or co-operative and (b) an employee-led buy-out of the business.

Hansard source (Citation: HC Deb, 3 November 2010, c841W)


Edward Davey (Parliamentary Under Secretary of State (Employment Relations, Consumer and Postal Affairs), Business, Innovation and Skills; Kingston and Surbiton, Liberal Democrat)

I have met with both the CWU and Unite to discuss Royal Mail matters. Government have been clear that their policy for ownership of Royal Mail is to enable a sale of shares in the company in order to secure the future of both Royal Mail and the universal postal service, and as part of this to make available 10% of the equity for employees as part of the privatisation process. This was set out in the policy statement that we published alongside introduction of the Postal Services Bill on 13 October "Delivering for the future-a universal mail service and community post offices in the digital age". It can be viewed in the House Libraries or online at:

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Neither the CWU nor Unite have raised with Government the possibility of either a mutualisation or employee buy out for Royal Mail. However, a mutualisation or employee-led buy out of Royal Mail is unlikely to give it the access to the commercial confidence and disciplines of private investors that it needs to allow the company to modernise faster and keep pace with the changes in the market.

[DirtyHarry]

Piss off, Fuller...you plum.