SNP - Small businesses hit by post privatisation plan

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SNP Business and Enterprise spokesperson, Mike Weir MP, has condemned the efforts by the coalition government to squeeze small businesses after revelations that Royal Mail is demanding a 20 per cent reduction in costs from small suppliers ahead of privatisation.

Mr Weir said:

“It appears that small businesses are being forced to pay the price of privatisation with a further squeeze on their already tight margins as the coalition government try to make Royal Mail more attractive to a corporate buyer.

“Not only are small businesses likely to be those worst hit by privatisation, since they have few alternative service options, and are unlikely to be able to access special deals on bulk usage of postal services, but they are now expected to bear the brunt of the cost of reducing Royal Mail’s losses.

“This exposes the Coalition government’s total hypocrisy They talk about the importance of small businesses yet they allow their own organisations, first outsourcing giant Serco and now Royal Mail, to put the squeeze on small businesses which are the very foundations of local economies.”