Postwatch chairman Carr turns up heat on UK Royal Mail
Postwatch chairman Peter Carr has waded into the row over Postcomm’s pricing proposals, tongue-lashing Royal Mail for claiming the price- freeze would starve the company of cash.
The watchdog maintains that the plans allow a minimum capital expenditure of #750m up until 2010. It claims, in fact, that Royal Mail will spend #40m less than its budget under the current deal.
A Postwatch spokesman says: “Royal Mail is making an issue out of nothing. It is not being starved of investment. Quite the contrary, it has the freedom and the money.”
Carr comments: “Royal Mail’s analysis is interesting, but completely wrong. It is guaranteed an 8 per cent cost of capital on all efficient investments, and can exceed #750m if it wishes.”
The move follows Postcomm chairman Nigel Stapleton dismissing as “laughable” Royal Mail’s claim that the proposals would slash #2bn off its market value (PM last week).
Chairman Allan Leighton called the plans “a blueprint for Royal Mail’s inexorable decline”, adding that it was a “kick in the teeth” for staff.
