Greene hits out at Royal Mail criticism
Royal Mail’s chief executive Moya Greene claimed that criticism of the operator’s modernisation programme was unfair. Greene – who is only 14 weeks into her new role after leaving Canada Post – said the company is making “great progress”, and also praised the government over plans of reform.
Speaking at an industry conference earlier today, Greene said: “I have heard a lot about Royal Mail being slow to modernise, being inefficient, and the necessity to keep Royal Mail under a great deal of pressure to become more efficient.
“What I have seen does not correspond to what I have heard. It is not ‘fair comment’ to talk about Royal Mail as if it were a company uninterested in change, unable to modernise, as if it were a company that did not understand the efficiency imperative that faces everybody in this industry.”
The chief executive said it is a “momentous time in the history of the company”, and an important phase for universal service providers, in order to continue to provide “great levels of service”.
In defence of the company, Greene added: “Royal Mail has surpassed any other modernisation programme I have seen. It is a challenge for me to listen as I hear the kind of criticism we have received.”
She went on to say that Royal Mail already has some of the best mail sorting facilities in the world.
“We are now starting to get international recognition for what we are doing. I would like to see that include recognition from the UK.”
Last month, the UK government announced plans to privatise up to 90% of Royal Mail, as a part of the Postal Service Bill. Under the proposals, existing regulator, Postcomm, will be replaced by Ofcom, the communications regulator.
Greene announced that the Bill is going to have a “huge impact” and “shape the future of Royal Mail”.
She thanked business secretary Vince Cable and postal minister Ed Davey – stating that these individuals have “put huge energy and determination” into Royal Mail. “It is incredibly gratifying to see the importance to which the government attaches to the Postal Services Bill.”
Greene stressed that there were three important aspects to the Bill: It gives Royal Mail access to capital; it relieves the company of the huge pension deficit; and it imposes new regulatory framework for the universal service in Great Britain.
“The Bill respects and acknowledges that customers should be at the forefront of everything we do in relation to policy, and that competitors are important, not just for the vitality of the industry, but to meet the changing expectations of customers.”
Greene concluded by saying that “now is the time for very significant regulatory reform”.
“We respect regulation. We respect there is a need and a value in regulation, but we have been waiting for a long time for regulatory reform. We have been waiting since 2007, and for all of that time, we have not been able to see the road to real viability in this regulatory framework we already have.
“I urge you to think about this business in a new way: To think about this business as a miniscule part of a larger market; a business that no individual can dominate, because it is changing so fast; a business that nevertheless is a viable piece of social cohesion in our country; and a business that needs reform not three years from now, but now.”
