Hewitt to appoint Consignia chief
The government is to appoint a new-broom chairman to run the postal services group Consignia – whose performance it condemned yesterday as “simply not good enough”.
News of the planned boardroom change follows the announcement earlier this week of a record pounds 100m half-year operating loss at the group which was granted commercial freedom earlier this year.
Trade and industry secretary Patricia Hewitt said Consignia chairman Neville Bain, 61, would stand down from his post at the end of the year, when his contract runs out. A successor would be chosen as quickly as possible.
“The service that is being provided by Consignia at the moment is simply not good enough,” she told MPs during trade and industry questions. “I do expect the management and the unions who have been asking for years for greater commercial freedom now to work together to use the commercial freedom that we have given them to deliver a better service to customers.” She said the disappointing figures reflected deep-seated problems within the organisation.
Postwatch, the industry watchdog, which called for a change in Consignia leadership in the week of the grim half-year result, said the change would be in the best interests of consumers. “Hopefully this is a prelude to a period of change that will see improved service and value for money for customers.”
Consignia said Mr Bain had set the foundations for change within the company.
He had headed the business during a period which had seen the end of the legally enshrined letter monopoly, the rise of competition from electronic communications and the creation of a postal regulator issuing licences to rival mail companies.
A spokesman added: “Consignia has already announced measures which will improve the quality of mail services and return the company overall to profitability in all core activities.
