UK Government to forego Consignia dividend this year

The government has decided to forego the payment of a dividend from Consignia PLC for this financial year, releasing 64 mln stg back into the company, said Trade and Industry Secretary Patricia Hewitt.

She told the House of Commons the move will help the company during its period of restructuring.

Hewitt said the 15,000 job cuts over the next three years are “unavoidable if we are to create a high quality postal service”.

She called on new Consignia chairman Allan Leighton to forge a better partnership with the business’ militant trade unions.

Hewitt also said the government supports Leighton’s wish to lose the name of Consignia and revert to the original Royal Mail.