UK Lib Dems join Royal Mail debate
POLITICAL controversy over the future of the Royal Mail continued yesterday as the Liberal Democrats called on the Government to turn down the organisation’s request for Pounds 2 billion of investment.
The Treasury is considering the appeal, which is linked to a controversial employee share ownership scheme backed by the Department of Trade and Industry.
But Ed Davey, Liberal Democrat trade and industry spokesman, said: “Royal Mail is in financial crisis, but a taxpayer bailout is not the solution. Under Labour’s plans, the public would pay for the initial cash injection and still have to endure stamp price increases.
“Ministers’ half-baked plans are effectively a sell-out to their backbenchers, and will leave both Royal Mail and the taxpayer without a long-term sustainable solution.”
The Liberal Democrats want Royal Mail to be part-privatised, with the proceeds pumped back into investment in new equipment. Royal Mail is not as automated as its main competitors, which are now allowed to compete across all services in Britain. It has asked the Government for the cash to fund investment because it says that it is struggling with a Pounds 4.5 billion pension deficit.
Linking the investment with an employee share ownership plan has caused anger in the main postal union and among Labour politicians.
